How Debtor Finance Works
Debtor Finance is a more flexible and convenient means for business owners to generate cash flow from sales. Thane Commercial specialises in Debtor Finance in Melbourne and Adelaide, making it easier for small businesses to manage their working capital.
There are different types of Debtor Finance arrangements, including invoice financing, receivables finance and factoring, but all are based on the same principle. This type of business finance involves advancing funds against trade debtors before payments are made for goods and services, which speeds up cash flow and is not reliant on Bricks and Mortar Security. This enables you to maximise flexibility and use your available security far more efficiently, by either releasing clearance of hard-core overdrafts or restructuring of facilities to take more account of your real needs.
Debtor Finance process
Unlike traditional funding, a business making use of Debtor Finance sends invoices for sales to its finance provider, which pays a portion of the invoice. When the customer pays the invoice later, their payment is automatically directed to the finance provider, with the balance of the total being forwarded to the business, usually within 24 hours of receipt.
How Thane Commercial can help
Thane Commercial is a Debtor Finance specialist. We can create tailored Debtor Financing solutions to guarantee your business accelerated cash flow, giving you more working capital to help achieve your goals.