Debtor Finance - also known as Cashflow Finance, Invoice Discounting and Invoice Factoring - comes in many different variants.
All have one basic feature - funds are advanced to a certain percentage (usually 80-90%) against debts owed to a business for goods or services supplied on credit to other businesses.
The biggest benefit of Debtor Finance is that it accelerates cashflow. Normally the money it costs to produce a good or provide a service is tied up in debtors and is not available for the business to use until payment has been received.
Through Debtor Finance, cash becomes available well before the debtor actually pays.
The extra cash has traditionally been used to purchase more stock, hire more staff or advertise to grow the business, but it can be used for any purpose the business wishes.
Additional benefits of Cashflow Finance include:
If you want to find out more about Debtor Finance and how it can benefit your business, please read our Debtor Funding Guide for Businesses or Debtor Finance FAQs, complete an online enquiry, or call us on 1300 STRATTON (1300 787 288).
For more information about any of our products or services, please make an online enquiry.
Or, you can call us on:
1300 STRATTON (1300 787 288)
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Original URL: http://www.strattonfinance.com.au/other-services/cashflow-debtor-finance.aspx
stratton offers finance and insurance for cars, properties, equipment and more. Visit us online at http://www.strattonfinance.com.au, or call 1300 STRATTON (1300 787 288).