Debtor Financing

Balancing your cashflow?

IMAGINE IF YOUR CUSTOMERS

paid their invoices within 24 hours?

You would have greater control over your finances, be able to pay your creditors on time and easily fund growth. You would have fewer bad debts, less administration and be able to turn in your debt-collector’s cap. Well, cashflow finance is the next best thing.

Power up your business

One of the most powerful tools for businesses around the world is cashflow finance. Put simply, cashflow finance advances money against your outstanding invoices. This means that as your sales grow, so does your business’s financial power. Your access to finance is no longer limited to the value of your real-estate but is powered by your business’s growth.

There are two main types of cashflow finance: Invoice Discounting and Factoring.

IMAGINE THE FINANCIAL POWER

accelerated cashflow can yield!

You could reduce your business borrowings, lift your borrowing power and increase your purchasing power, and all within 24 hours.

That’s the power of Invoice Discounting.

It is for businesses who wish to access the money tied up in their invoices, but who wish to collect their invoice payments and manage and maintain their own debtors ledger.

It is designed for well-established companies who sell to other businesses on credit terms and who have expertise in managing and maintaining their debtors ledger.

We have access to lenders that offer “Open Account”, they have a secure internet site which gives you access to up to 80 per cent of your invoice value within 24 hours.

The service is not disclosed to your customers unless you choose.
You do your own collections and send out your own monthly statements.

It is suitable for most industries.

IMAGINE IF CHASING DEBTS

were a thing of the past!

You would be able to concentrate on building your business, improve customer service, reduce your overheads and take advantage of early settlement discounts from suppliers.

That’s the power of Factoring.

Factoring takes the cashflow finance concept one step higher.

It allows a business to secure cashflow against its invoices but the financier manages the collection of invoices and the maintenance of the debtors ledger.

This means your business can concentrate on core money-making activities such as business development and customer service, while leaving the more mundane chores of debt collection to the lenders.

It is suitable for all businesses that sell on credit terms to other businesses, but particularly those that lack the resources and expertise to manage their debtors efficiently, and those going through rapid growth phases.

For a small fee, your cashflow quietly takes care of itself and usually yields savings well in excess of the fees paid.

You can focus on growing your business, secure in the knowledge that your accounts are being well managed.

It is designed for companies of almost any size who sell to other businesses on credit terms and is suitable for most industries.

IMAGINE HAVING MONEY

in the bank just when you need it!

You would be able to fund the takeover of that company you’d been eyeing for years, you could make that clean break into the export market you’d been planning, and you could gain a competitive advantage by offering your customer open account terms – all in a one-stop shop. That’s empowering.

Cashflow finance can help meet many business needs:

Support business growth
As your sales grow, you can be confident that your cashflow will keep pace, enabling you to avoid the dreaded cash crunch.
In this sense, cashflow finance also helps businesses emerge through one of the most testing periods – the early growth phase – intact and strong enough to meet the challenges of the next level.

Purchase assets
If you need to buy major assets or are planning a business purchase, cashflow finance can free up the funds locked in your sales ledger.

Cut administration
As your customer base has grown, so has the amount of time and resources needed to chase payment and you now want to look at cost-efficient alternatives.

Help exporters
You want to break into an export market and would like the collections, currency ledger and payment protection taken care of for you.

Allow exports on open account terms
You are already exporting but would like the convenience and competitive advantage of offering open account terms.

Tax and superannuation
Juggling the twin quarterly demands of GST, superannuation payments, with the usual business commitments, can prove a headache for the most organised of businesses. A cashflow finance facility can give you peace of mind during these testing times

HOW DOES IT WORK?

  • Step 1You provide the goods/services to your customer and invoice them.
  • Step 2You send the invoice details to the financier, either electronically or by post.
  • Step 3
    The financier makes available up to 80-90% of the value by the next working day.
  • Step 4
    Either your credit controller, or if you choose, our factoring credit management service will carry out the collections procedure.
  • Step 5
    When your customer pays, the financier deducts the 80-90% initially drawn by you and refund the balance to you, less our charge.

SUITABLE INDUSTRIES

Cashflow finance is suitable for most businesses that provide their products or services to other businesses on credit terms.

  • Temporary labour hire
  • Manufacturing
  • Wholesale
  • Business services
  • Transport

These are just a small sample of some of the types of businesses that we can assist:

  • Soft drinks and food
  • Paper and printing
  • Electronics and electrical goods
  • Computers and wholesaling
  • Chemicals and plastics
  • Clothing and textiles
  • Giftware
  • Footwear
  • Furniture
  • Light engineering
  • Rubber, plastics
  • Wholesale steel stockholding
  • Toys and games
  • Timber wholesaling
  • Stationery