Debtor financing has been gaining popularity in Australia as a way to finance small and growing businesses that need working capital. This solution allows you to finance slow-paying invoices, which provides immediate funds to pay for company expenses. This article explains how the debtor financing process works and helps you determine if it is the right financing […]
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How are Invoice Verifications Done?
Summary: Debtor finance companies can finance an invoice only after it has been verified. This article helps you understand why invoices are verified and how the process works. We cover the following: What is debtor finance? How are invoices verified? How are problem invoices handled? 1. Understanding debtor finance Debtor finance, also known as invoice […]
Debtor Financing v. Overdrafts
Summary: Small companies that experience short-term cash flow problems often have few alternatives. Their available options often include getting funds from investors, a business loan, an overdraft facility or using a debtor financing programme. In this article, we compare debtor financing to an overdraft facility to help you determine which one is better for your […]
What is Invoice Discounting?
Invoice discounting is a form of debtor finance. It helps companies that have cash flow problems because customers are paying invoices in 30 to 90 days. Offering payment terms is expected when working with larger commercial and industrial customers. However, allowing customers to pay in 30 to 90 days can affect your cash flow if your financial reserves are […]
What is Invoice Finance? How Does it Work?
Summary: Invoice financing, also called invoice factoring, is a type of debtor finance that helps companies with cash flow problems due to slow-paying clients. It allows your business to finance invoices, which improves your company’s working capital. Transactions are structured as the sale of accounts receivable rather than as a business loan. Consequently, they can […]
What is Debtor Finance?
Summary: Debtor financing is an umbrella term used in Australia that encompasses a number of products that finance invoices. The most common debtor finance solutions are invoice factoring and invoice discounting. Invoice factoring and discounting are used by companies that offer 30- to 60-day terms to customers but have problems waiting for payments. Debtor finance […]
How Much Does Invoice Finance Cost? (Detailed Explanation)
This article explains how to invoice financing fees work and how much it costs to use the programme. It also provides an example that shows how these fees are calculated and how they are applied. You will learn the following: 1. How does invoice finance work? This article assumes that you are already familiar with […]
How to Collect Invoices and Avoid Overdue Accounts
The invoicing and collections process is one of the most important jobs at any company. Growing companies have to be good at getting paid for their products/services. Timely payments provide you with the cash flow to pay wages, suppliers and other important expenses. Collecting unpaid invoices doesn’t have to take a long time or be tedious. With […]
Financing For Roofing Contractors
Summary: One of the challenges of working as a roofing contractor is that most clients pay you 30 to 60 days after you raise an invoice or progress claim. End employers and principal contractors often demand net-30 payment terms as a condition of working with them. However, this demand affects your cash flow and could […]
How to Finance a Construction Company (Subcontractor)
Summary: Getting paid is always a challenge in the construction industry, especially for subcontractors. Most construction subcontractors work with principal contractors and end employers under a contractual arrangement that uses progress claims. The subcontractor raises an invoice once a stage of the project is completed and then waits 30 to 60 days to get paid. […]