DEBTOR FINANCE

How to maintain a healthy cash flow by using the clients who owe you money.

Also known as Factoring or Cash Flow Finance, Debtor Finance is a highly flexible and increasingly popular way to control the amount of money you have available to pay your various business expenses.

All too often, companies experience significant cash-flow shortages as they grow. It's like, we have some good news and we have some bad news. While your sales are increasing, your costs are generally climbing right along with them. Although your outstanding debtors may have increased significantly, it is not yet money in the bank. As a general rule, you have to wait between 60 to 90 days before you receive payment. Meanwhile you have wages and bills to pay.

By using Debtor Finance, we can show you how to be paid 80% of your invoice value within 48 hours. And while there's a fee involved, it's usually far less costly than offering your client a discount for paying their invoice early. Besides, now that you have the cash, you have an easy way to make up the difference: Just obtain discounts from your suppliers for quick payment.

All this comes without the need for Bricks & Mortar Security.

We provide two ways for you to organise Debtor Finance.

Invoice Discounting

This is a Confidential arrangement where you obtain 70% of your invoice from a financier. You continue to collect your debtors, and, once payment is received, the cheque is banked into a specific debtor discounting bank account, made out in your name. Then the financier pays you the balance of the invoice (30%) less their fee.
Your clients are not aware of this arrangement simply because nobody tells them.
Now, because some suppliers pay straight away whilst others wait until the last minute, you're given a choice of either discounting all or just some of your debtors. This allows you to maintain your usual relationship with the prompt payers (thereby attracting no fees), and discount the slow payers.

Factoring

This alternative works much the same as Invoice Discounting. Here, your clients will be aware that the invoices are being financed. Additionally, factoring allows us to finance 80% of the Invoice Value. To find out more about having other people help you keep your cash flow trim and taut, Contact us TODAY!