Great report on Debtor Finance from the Advisor
I was very pleased to contribute to this report. There is far too much confusion about terms like Factoring, Invoice Finance, Receivables Finance, Single Invoice Finance, Progress Claim Finance.
Its actually quite simple they are all terms that relate to the use of a Company’s Debtors (receivables) as a financing mechanism rather than relying on more traditional forms of working capital assistance such as secured overdrafts and the like.
Debtor Finance offers an excellent flexible solution for SMEs cash flow management and is one that is not always fully understood by Brokers and Advisors. With tight credit conditions growing SMEs are looking for alternatives which will provide them with additional capacity to expand and take advantage of better supplier terms. It is also very important to note that Debtor Finance facilities are not reliant on Bricks and Mortar security which means that personal property can be used for other purposes such as the funding of longer term requirements including wealth creation, retirement planning and acquisition. The key is to fully understand the businesses working capital cycle and ensure that there is a suite of solutions that work together to get the best result.
Read the full report here: Debtor Finance
Debtor finance is one of the fastest growing working capital products in Australia and around the world, so what do brokers need to know to succeed in this market?