Invoice Finance

Debtor finance or Invoice Finance turns unpaid invoices into quick, efficient cash flow for growth and other business purposes. What's great about it is that property security is not usually required. Access to funding is scalable, growing as sales grow.

If your business sells to other businesses on credit terms, Debtor Finance could be the solution to your cash flow requirements.

Why stress about paying your suppliers and wages on time when you can convert your outstanding invoices into immediate cash flow? At Fintech Hub, we understand how much pressure you are under to keep your business moving along. Debtor Finance is an easy and simple method of getting your bills paid – quickly and predictably. That’s one less thing to worry about so you can concentrate on the big picture: Growing your business.

Debtor finance is suitable for any business that sells on credit terms to another business. Regardless of the industry type, debtor finance could be the right solution for you. Ask yourself:

• Is the success of your business putting stress on your cash flow?
• Do you need quick access to cash to keep the business on track?
• Do you want to avoid using your personal assets as security for your business?
• Do you need consistent cash flow to pay suppliers on time?

If you answered yes to any of the above, then debtor finance could be right for you.

What is Debtor/Invoice finance?

Invoice Finance is a short-term cash flow arrangement. It provides access to funds based on the strength of your debtor ledger.

• Flexible line of credit which grows as your sales grow
• Receive cash flow using the strength of your accounts receivables
• The product is tailored to your overall situation and business needs
• Convenient and flexible cash access as required (eg for seasonal fluctuations)
• Improved cash flow for your business can lead to supplier discounts as you are now able to make early payments
• 24-hour online access to view and request funds

• You sell your uncollected invoices to the finance company.
• The finance company will make up to 80% of the eligible invoice value available within one business day.
• You access the funds as you need.
• Your loan is reduced as debtors pay into your account.
• The finance company gives you more funding when you submit new invoices.

Debtor and invoice finance may be suitable if you:

• offer payment terms to your business customers
• experience seasonal and day-to-day fluctuations in cash flow
• turnover in excess of $1M of goods and services
• offer trade payment terms of between 30 and 60 days.

Step 1: You deliver your goods or provide services and raise your invoices to your customers. Send a copy of your invoices to the chosen financier with supporting paperwork.

Step 2: Draw on available funds based on an agreed percentage of the invoices.

Step 3: When your customers pay their invoices, the lender will pay you the balance less any fees.

• to pay your larger bills, like wages and supplier payments.
• to negotiate better supplier rates, e.g. you might get a better price if you offer to buy in greater volume or pay your invoices earlier.
• as a line of credit to be drawn on when you need it.

Debtor finance is best suited to businesses in the following industries:

• Manufacturing
• Wholesale trade
• Recruitment and labour hire
• Transport and storage
• Business Services
• Mining Services

Invoice Finance is suitable for the following business structures;

• Pty Ltd companies
• Partnerships
• Family Trusts
• Sole Traders

As the taxation and accounting treatments of various finance products may vary, we recommend you seek independent expert advice before choosing an option.