Debtor Financing

Do you experience a large timing gap between when your goods are sold and when you get paid? Or perhaps when your services are rendered and when the client pays? If so, Debtor Finance or Invoice Finance may be suitable for you, by helping you borrow against the value of your invoices to release funds to invest back into your business.

Leverage the value of your invoices to accelerate business growth

What percentage of my invoices can I borrow against?

You can borrow up to 80% of your invoices, depending on the strength of your business and your cash collection cycle.

What are the costs of Debtor Finance?

The costs of Debtor Financing are:

  • Establishment Fee for the set up of the facility
  • Facility Fee as interest on funds borrowed
  • Purchase Charge which is a fee on the value of gross invoices purchased or the facility limit
What is the process to drawdown on Debtor Finance?

To draw down on the facility you will need to provide your goods or service and send the invoice to your bank. The bank will release new funds into your nominated business bank account up to the agreed percentage of the invoice.

What are the risks of Debtor Finance?

There is an interest cost associated with the funds borrowed against your invoices. You must ensure that you are eventually able to collect on the invoices to pay back the loan, as well as you are able to make a return on your new sales that is higher than the cost of the capital.

What are the steps to set up a Debtor Finance Facility?

The steps to setting up your Debtor Finance Facility are:

  1. Understand and evaluate your needs
  2. Collect supporting documents
  3. Pick and submit application to preferred bank
  4. Sign loan documents
  5. Set up facility and start receiving funds

WHO TO TALK TO

Need professional advice on Debtor Financing?
These are experts to get in touch with.

Will Li
Commercial Director
Tommy Lim
Managing Director