One of the challenges of working with business clients is that they often pay invoices in 30 to 60 days. Many small and growing businesses cannot wait that long for a client’s payment. They need the payment sooner so that they can pay their own expenses.
Slow payments can affect your ability to manage and grow the business effectively. You can fix the gap in your cash flow by financing your invoices through a debtor finance program. Debtor finance provides an advance of up to 85% of the value of your unpaid invoices. It can improve your cash flow, enabling you to pursue growth opportunities.
Commercial Capital LLC is a leading provider of debtor finance in Perth and offers its programmes across Western Australia. We provide flexible business financing solutions at competitive terms. To get an instant quote and additional information, submit an online enquiry.
Select a progreamme:
This solution helps small companies in all industries that cannot afford to wait up to 90 days to get paid by their commercial customers.
This product helps construction subcontractors operating under the Security of Payments Act who need to finance progress claims.
Debtor finance basics
In Australia,debtor finance is used as an umbrella term to refer to two solutions: factoring and invoice discounting. Factoring and invoice discounting finance slow-paying invoices and improve your cash flow. However, each solution works differently.
Factoring offers a funding and credit management solution. It works best with small and growing companies that also need to improve credit and collections. Invoice discounting, on the other hand, is a funding-only solution that helps more mature companies that already have established credit management and collections functions.
Usually, the debtor finance company funds your accounts receivable in two payments. The first payment covers up to 85% of the total value of the invoices. It is deposited to your bank account soon after you raise the invoice with the client. The second payment covers the remaining funds, less the fee, and is deposited to your account once the invoices are paid on their usual schedule.
To learn more about the programmes, read “How Does Debtor Finance Work?”
The most important advantage of using factoring or invoice discounting is that your cash flow improves. You will notice this improvement soon after using the line. However, other advantages of factoring and invoice discounting include:
- Flexibility – these solutions grow with your business
- No real estate security is needed
- Enables you to offer net-30 terms with confidence
- Easier to get than a business overdraft
Learn more about the benefits of debtor finance.
Can we help you?
Invoice factoring and invoice discounting are designed to specifically solve cash flow problems created by slow-paying customers. These programmes should help your company as long as it has reasonable profit margins
Would you like more information?
We are a leading provider of factoring and invoice discounting in Perth. For more information about our services or fees, fill out this form. One of our representatives will contact you shortly.
To learn more about our debtor financing solutions, read:
- What is Invoice Factoring?
- What is Invoice Discounting?
- How to Choose the Best Debtor Finance Company
- Should You Offer Net-30 Terms to Clients?
Industries we work with
Debtor finance can work well with the main industries in Western Australia, including mining (resources), construction, transport, tourism services, consulting and business services. However, debtor finance is flexible enough that it can be used by companies in most industries as long as transactions meet the financing criteria.
We can work with companies in the major metro areas of WA, including:
- Kings Park