Debtor Finance

Why Use Debtor Finance?

More business leaders are realising the advantages of Debtor Finance for improving cash flow and benefiting the bottom line. Thane Commercial’s Debtor Finance specialists in Australia can help you decide whether this finance option is right for you.

Here are three common factors our clients value when choosing Debtor Finance strategies.

1. Cash Flow

Under Debtor Finance arrangements, businesses can be funded up to 80% to 90% promptly by their finance providers when goods are delivered. This allows you to take advantage of this acceleration in your cash cycle to meet creditor payments in a timely manner, meet payroll or ensure that ATO obligations are met. Because the facility is linked to the value of your debtors, it is able to assist you to increase sales and take advantage of opportunities to grow your business. Your customer’s payment is paid to a nominated account controlled by the finance provider later, and the balance is reimbursed to your business.

2. Greater Flexibility

Receiving your Debtor Proceeds earlier gives your business more flexibility, whether the cash is used to cover your outgoings or put toward strategies to grow your business and acquire assets. In effect, you are bringing forward the payment of up to 80 to 90% of the value of your sales to be used in your business immediately, rather than waiting for your debtors to pay in the normal course of business. By bringing forward your Cash Flow, you can then use the flexibility to ensure that you are meeting the day-to-day demands of your business.

3. Enhanced Security

Debtor Finance unlocks the cashflow tied up in Trade debtors, as Funding becomes available at the time of Invoicing rather than relying on final payment by debtors to meet their day-to-day working capital obligations. Any issues with delayed invoices or customers not paying will not directly impact on your business activities in such a significant way.

Working Capital Solutions

At Thane Commercial Pty Ltd, we recognise the individuality of businesses and work with our clients to develop tailored Working Capital and Cash Flow solutions that suit them. It can never be a “one size fits all” when working capital and cash flow are involved. What is needed is a deep understanding of where the pressure points are, what is causing them and what is the best way to achieve the company’s potential. We are also passionate about ensuring that a business “stands on its own feet” without relying on the owners/founders Bricks and Mortar assets like their family Home or Commercial Property. To do this we look at solutions that include: