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Home Cashflow Business Blog Quick debtor finance facts with CashFlow advantage


Debtor Finance is quick (especially compared to how banks work!) and very straightforward. It’s not a loan, and there’s no need to put your property on the line as collateral. So let’s take a look at the steps involved, and how it works.

Debtor Finance for small businesses - a step-by-step summary;

1)    You receive a purchase order from your customer as usual, complete the work and deliver the product or service.

2)    Make sure you have some sort of solid evidence that you’ve delivered the product or service.

3)    Raise an invoice, send it to your customer and send a copy to CashFlow Advantage, too.

4)    CashFlow Advantage will pay you as much as 80 percent of the value of the invoice in as little as 24 hours from the time the invoice is lodged.

5)    Upon receiving payment of the invoice by your client, CashFlow Advantage will pay you the balance of the invoice, less a modest fee.

 

The benefits of Debtor Finance for small businesse

 

  • Because Debtor Finance effectively gives you access to cash via your own invoices, it’s a finance solution that doesn’t involve borrowing or debt.
  • There’s no need to waste days or even weeks applying for a bank loan and waiting for an answer.
  • Red tape is kept to an absolute minimum.
  • When compared to traditional finance options such as banks and trade financiers, qualifying is both easier and faster.
  •  Your business credit isn’t put under the microscope, because Debtor Finance is based on the value of your invoices. In fact, your customer’s credit record is more important than that of your own business.
  • There’s far less stress because there’s never any need to put your property on the line as collateral when you use Debtor Finance.
  • Debtor Finance takes away the constant worry of meeting payroll when you face business cashflow challenges.

What types of business can CashFlow Advantage help?

At CashFlow Advantage we’re happy to talk with just about any business that supplies products or services to other businesses using credit terms.

What types of business don’t fit the Debtor Finance model?

Debtor Finance doesn’t apply to retail businesses who sell directly to their customers, or to businesses such as Accountants and Lawyers.

So what do I need to get started using Debtor Finance through CashFlow Advantage

 

  • A registered Australian Business Number (ABN)
  • Customers who are established and creditworthy.
  • Your business can be a Company or a Sole Trader, but note that individuals don’t qualify – Debtor Finance is strictly business to business.
  • You’ll need solid paperwork with all your books in order, of course showing evidence of business being carried out regularly.
  • An appointment is made with CashFlow Advantage to go through your basic business details.
  • An application form is completed with details such as any debtors you might have, what your annual income is – all the usual basics.

 

There’ll be some additional paperwork needed to go along with your application form, too, covering facts such as Personal Asset and Liability Statements, company financials and bank statements. Finally, once your application is accepted, a credit check will be run on your customers.

Debtor Finance through CashFlow Advantage is quick, easy to understand, and frees up the cash you need without leaving debt hanging over your head. If you’d like to know more, simply email us oninfo@cashflowadvantage.com.au or call on 1300 557 771

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