Important information

Please be aware of the following;

Effective Immediately Tuesday 6th March 2012 Credit License Cancellation Lodged By Us With ASIC

Ability Finance have elected to cease all credit activities covered by ASIC credit licensing for various reasons including but not limited to;

  1. Lender commission cuts over the past few years.
  2. Additional liability, workload and costs arising from National Credit Licensing
  3. Lender minimum volume restrictions which result in smaller brokers not being able to offer all options to customers.
  4. Regularly encountered inexperienced lender staff who are unaware of their own employers policies whose advice wastes both broker and customers time and resources.
  • As a blog style website there is only historical content contained within this website that is out of date and no longer applicable. This content must only be used for historical reference purposes.
  • Ability Finance, through choice, no longer represent any lenders who may be historically referred to within this website.
  • No information or content contained on this site should be relied on as being current.
  • No content contained within this site should be taken as advice in any way at all.

Should you feel there is any content that should be removed from this site please contact the webmaster.
By any chance you feel specific content is interpreted as offering any credit activities by us it is to be ignored, please report to the webmaster for removal or modification.
If you are legally entitled to engage in credit activities and would like to advertise on this site please contact the webmaster.
If you would like a website developed or even to purchase this site modified to your requirements please contact the webmaster.
Meanwhile we are working hard at creating a one stop shop for purchasing high quality spray painting equipment online including an extensive range of the best spray gun models we are able to offer at discounted prices everyday right across the complete range of available spray gun models. Online spray gun prices with old fashioned personal service levels.

Debtor Finance | Invoice Discounting

Many businesses in Australia are not aware that they can use their debtor book, to effectively finance growth and even out cash flow. Debtor finance provides an innovative alternative to businesses overdraft facilities – one that is based on business debts without the need for bricks and mortar security.

 

What is Debtor Finance?

Debtor Finance is one way for businesses to raise working capital.

Debtor Finance – also known as invoice discounting - provides the business (the borrower) with finance based on the value of its outstanding debts. A revolving credit facility is set up which provides funding at up to 90 percent of the value of invoices being issued by the business. The rest is made available to the business, less any interest or fees, when their customer (or debtor) pays.

 

Invoice Discounting Compared to an Overdraft and Factoring

 
Overdrafts Invoice Discounting
Factoring
Security required, usually property Business maintains credit control Outsourced collections gives a third party contol over a businesses biggest asset
Lower levels of funding available Flexible limits Intrusive on customer relationships
Uncertainty of renewal terms Typically undisclosed to customers More expensive
Fixed limits Finance up to 90% of invoice value Reputation of being a last resort
  Rates competetive with overdrafts  
  Security scaled to match risk  
  Secured with fixed and floating charge on business and director personal guarantees  
  • Debtor finance is suitable for a wide range of businesses across both manufacturing and services industry sectors with annual revenues between $1 million and $75 million. Potential borrowers must have ‘business to business’ invoices where the goods and services have been delivered and business has clear title to the monies owing.
  • Debtor finance classification - unregulated.
  • Debtor finance purpose - working capital funding. Funding can be used for a variety of purposes including to grow existing and new lines of business, reduce creditors, gain supplier discounts, manage seasonal trading demands, and other special scenarios such as debt restructuring orbusiness acquisition.
  • Debtor finance term - no fixed term. Cancellable upon 60 days notice.
  • Debtor finance interest rate type - variable.
  • Debtor finance minimum facility size - $150,000;
  • Debtor finance advance rates - maximum advance rate of 90% depending on borrower risk grade and historical debtor payment performance.