debtor factoring
Fast & Flexible
Debt Factoring
Only pay as you use
No lock-in contracts
Funds in 4 Hours
How Does Debt Factoring Work?
Send us your Invoices

Invoice your clients and send us a copy

Funds in 4 hours

We process your invoices and advance up to 80% of the invoice value

When paid – You get the rest

Receive the remainder when your customer pays us

Still unclear?… Call us on 1300 884 100 or watch our video to see how Debt Factoring works

Debt Factoring Australia

Here at Key Factors, we are proud to be your leading Debtor factoring company, ready to help you every step of the way. We have been providing our services since 1989, and we take great pride in arranging tailored and personalised financial solutions including debtor finance. Our expert team understands how poor cash flow can lead to a business failing, and when the banks will not help these businesses with higher levels of funding, it can become a real struggle. This is why we are all about helping businesses to make it through the tough times without a steady cash flow. To find out more about how we can help with debtor finance, call us on 1300 884 100, and one of our Key Factors cash flow experts, will be happy to assist you with your enquiry.

Businesses have different funding options available when they’re looking to get cash to keep them afloat or help them expand. Although traditional methods like bank loans are the most trusted, they’re also the most difficult. They are riddled with bureaucracies and extensive requirements that most small businesses cannot keep up with.

They’re also not suitable when the business is in urgent need of funds. That’s because the loans take weeks and sometimes months to get approved. Debt factoring is a more revolutionary and modern way for businesses to get the money they need without digging themselves into debt.

With debt factoring, facilities can be set up in a matter of days and then it only takes a few hours to get the money credited into your account, making this an ideal method to get cash into your business, especially when you need the money urgently. But what exactly is debt factoring, and how can your business benefit from it? Services we offer include invoice factoring, debtor finance, invoice discounting, invoice financing, selective invoice financing, debt factoring and more!

Instant QuoteNo Hidden Fees

Average monthly accounts receivable


Funds in 4 hours

$ 40,000

Up to 80% of invoice value

Fees for the first 14 days

$ 700

1.4% for the first 14 days & 0.1% per day thereafter for up to 90 days

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Benefits of Debt Factoring

Additional cash flow for business growth

Bridge the gap of slow payments

Working capital for start up companies

Meet operating expenses

Get on top of ATO obligations

Pay wages on time

What Is Debtor Factoring?

When you are looking to alleviate cash flow stress, debtor factoring (also known as debtor finance) is one way to do it. Debt factoring allows your business to bring forward your accounts receivable, to unlock immediate cash flow. This means that instead of waiting up to 90 days for payment, with debt factoring through Key Factors, we can fund your sales invoices in as little as 4 hours. When you have a more predictable cash flow, your business will be able to stay on top of all the day-to-day operating expenses, and you can even start planning for growing your business. It is no surprise that more business advisors are recommending deb factoring through our team at Key Factors.

Debt factoring is a type of invoice financing where a business passes its accounts receivables in the form of invoices to a debt factoring company for them to provide a cash advance on the value of the invoices. It’s an effective and efficient method businesses can use to escape difficult financial situations without incurring debt and paying high-interest rates.

Using debt factoring, the business can get the money it needs quickly, usually up to 80% of the value of the invoice and the balance once the client clears the invoice. Debt factoring companies provide this service at a small fee.

In addition to providing a cash advance to the business, the debt factoring company may also but not always take care of chasing the unpaid invoices for collection on behalf of the business, saving the business valuable time in administrative work and follow-ups to ensure the invoice is paid.

After the invoice is cleared, the debt factoring company forwards the money not initially paid out minus the balance of their pre-arranged fees for the service provided.

This funding method is becoming increasingly popular among new and small businesses and encompasses a wide range of products tailor-made to suit the needs of every business.

This solution is ideal for businesses that need help managing their sales ledger. Typically, debt factoring companies have fewer requirements for their services compared to banks, and they don’t really pay attention to the credit history of the businesses, giving businesses with a not-so-pristine credit history an opportunity to access funding.

Fast approval and funding process

Call us on 1300 884 100 to speak to a cash flow expert or contact us.


Should your business qualify, we will send you an approval to review within 24-48 hours.

Document and Settlement

On settlement, our team will actively work with you to get your invoices funded in as quick as 4 hours.

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No Property

No Hidden Costs

No Lock-in

No Use, No Fee

Types of Debt Factoring

Recourse factoring

The most common form of factoring most widely used throughout Australia and is the model used by Key Factors. This is a debt factoring arrangement where your business is responsible in the event that your customer doesn’t pay the factoring company the invoice they owe. If the customer fails to pay, your business has to pay the factoring company back.

Non-recourse factoring

This is the opposite of recourse factoring and rarely seen. It is up to the factoring to follow up on all invoices and ensure they are paid. If they can’t collect the debt, the company is responsible for the bad debt, not the business.

With non-recourse factoring, your business is not responsible for the debt even if your customer doesn’t pay. Because of the increased risk, debt factoring companies offering this service often charge a higher fee.

Whole-turnover factoring

Whole-turnover factoring refers to the number of invoices that you sell to the factoring company. In a whole-turnover factoring arrangement, you sell all of your invoices all of the time to the factoring company you work with. The company purchases each invoice as soon as you issue it. This type of debt factoring ensures your business has a steady cash flow, which can be useful for startups and businesses stuck in cash flow problems due to late invoices in the past.

However, the downside is that you pay significantly more in factor fees because of the many invoices you send the company’s way.

Selective factoring

This is where Key Factors thrives. Under this method of debt factoring, you’re allowed to select which of your invoices you’d like to factor. You have more control over your financing and access to capital, and you save on fees.

Selective factoring is ideal if you identify the customers who take time to pay their bills and those who pay their bills on time. It allows you to sell invoices that require more follow-up and get cash upfront.

Spot factoring

With spot factoring, you only sell a single invoice to the factoring company. Instead of agreeing to a factoring relationship, you simply make a one-time transaction.

This is beneficial to businesses looking to get an advance of capital without committing to monthly or annual agreements. It is advantageous for the business but riskier for the factoring company.

When choosing a debt factoring company, you should enquire if it requires a minimum invoice amount to agree to spot factoring and whether it charges higher rates for the service. You will find that most companies do because they prefer repeat and long-term business over a one-and-done.

How Does Debt Factoring Work?

The model for debt factoring is quite straightforward and easy to follow. When your business decides to use debt factoring services, it is essentially selling its outstanding account receivables (customer invoices) to a third-party factor at a small discount in exchange for immediate cash.

You can sell all or some of your invoices, but the exact terms and conditions will depend on the debt factoring company you choose to use. At Key Factors, you choose the frequency you want to factor and how many invoices you want to use to cover the gaps in cash flow.

For debt factoring to work, you must have provided products or services to the customers and billed them, but the invoices are yet to be paid.

The best thing about debt factoring is that the major focus is on that of your debtors. Depending on the credit risk assessment by the debt factoring company, once the invoices have been verified, you can receive between 80-90% of invoice payments. At Key Factors, the payment is credited to your account within 4 hours.

The cost of debt factoring varies widely depending on various factors, including the company you choose and the type of factoring. Most companies, like Key Factors, will charge a percentage of the invoice’s value as their fee, while others may charge additional services for services like credit checks account setup. Others may also have monthly or annual admin fees and early exit penalties.

When choosing a debt factoring company, it’s vital to work with one with transparent fees and no additional fees because this eats into the business’s profit margins.

Why Do Businesses Need Debt Factoring Services?

One of the reasons debt factoring is preferred by businesses is because it is more flexible on the terms and how you can use the money once you receive it. This type of financing works great for businesses that sell to other businesses on credit.

At Key Factors, we don’t dictate what you can and can’t do with the money once we credit it to your account. However, we’ve found that some of the common reasons businesses turn to debt factoring include;


Most businesses want to expand without taking additional debt through loans and other financing methods. Debt factoring allows them to do this. You can use the money you get to buy new equipment and expand your employee base. Because the money is debt-free, you can expand more aggressively without worrying about increasing your overhead by having monthly loan payments.

Pay wages on time

Some businesses have turned to debt factoring when they need to make payroll on time. Because of our fast turnaround, this service makes it easy for businesses to get cash quickly to pay employees.

Meet operating expenses

Your business might be profitable but not as liquid as you would want, making it hard to meet your operating expenses, including paying for a lease. This is common among small and startup businesses that don’t have buffer cash and rely on clients paying the invoices on time. If one of the customers delays payment, the business could be in dire straits. The money from debt factoring can be used to cover the running expenses of the business or be used as working capital for startup companies.

Other reasons businesses consider using debt factoring is to help bridge the gap of slow payments and also to stay on top of their ATO obligations.

Debt Factoring Benefits

Businesses have various funding options when they need additional cash injection. But debt factoring remains one of the most common and preferred, particularly among startups and small businesses, for obvious reasons, which include;

Improved cash flow

The main goal of debt factoring is to swiftly raise cash for the business. It is a quick way of getting cash from the customers who owe you without waiting for them to actually pay the invoices.

Although there is a fee associated with selling the invoice, you won’t be losing time, money or administrative resources trying to process the invoices.

With small businesses and startups, having money at the right time can be the difference between seizing an opportunity that could grow and expand the business versus stagnating. With debt factoring, you can quickly and easily improve your cash flow and have your money within hand in a day.

It shortens the cash flow cycle

Many small businesses struggle because sometimes the periods between work or order completion and payment can be longer than expected. This time lag poses a significant strain on the business. Debt factoring allows businesses to shorten that cycle and get the payment into your hands sooner, which is vital for a growing business.

Encourages rapid expansion

In the business world, growth opportunities are rare and highly time-sensitive. You need to have cash at hand to take advantage of such opportunities. You might have a new client with a larger order or project requiring you to quickly expand in capacity and staff. The fast turnaround times of debt factoring can provide you with the money you need for the expansion at only a small fee.

Peace of mind

Debt factoring can be the solution to most of your cash flow challenges. As long as you’re in business, you know that your cash requirements will be met and that you’re in a position to meet the needs of your business quickly and effectively. It’s a relaxing and calming feeling. 

Why We Are The Leading Debt Factoring Company In Australia?

You can only enjoy these benefits and advantages of debt factoring by partnering with the right debtor factoring company, and Key Factors is one of the best in Australia.

We’ve been around since 1989, providing effective and efficient business solutions to businesses across Australia. We have built strong relations with our clients in Australia, and our large country-wide network allows us to support businesses no matter their locality.

Our simplified signup process means businesses can easily join our platform. Other reasons why we are the best debt factoring company in Australia include;

No hidden fees

If you read the terms and conditions of most debt factoring services carefully, you will see that they have some hidden fees. These are often disguised as admin fees, which can be annual or monthly and early exit fines. These fees are usually small but add up over time and take away significant chunks of your profits.

At Key Factors, we have a simple pricing model with a percentage-based fee that is easy to calculate and understand. So you know how much the service will cost you.

Pay as you use

We don’t hold you down to a monthly or annual fee. Instead, we have a flexible pay-as-you-use plan that saves you money because you don’t have to pay any monthly or annual admin fees or early exit penalties. You can sell us as many or as few invoices as you want without any repercussions.

Fast Funding

Most debt factoring companies take a day or two to credit the money in your account. While this is still impressive, you can cash in with Key Factors in as little as 4 hours. We are the perfect go-to choice for businesses that want their money within a short time.

Flexible funding

With Key Factors, no lock-in contracts, quarterly audits or property security are required. This opens the funding pool to many more businesses that might find contracts or property security limiting their future. We also consider businesses with less than stellar credit, making us a unique tool that businesses can use to build up their credit by paying their other debts on time.

Selective factoring

When working with Key Factors, there’s no requirement to finance all your invoices with us. You can choose the invoices you want to finance and those you prefer not to finance. This leaves you with financial power over your business, and you can maintain a balance on your profits instead of entering into a contract that requires you to finance all invoices within a certain period.

Debtor Factoring Comes With A Range of Benefits

If you are concerned that you are losing control of your finances, debtor finance could be an easy way to take back that control, and keep your business on the right path. One of the benefits to choosing Key Factors for your debt factoring, is that we can provide you with highly competitive rates. With our debt factoring you can use the additional cash flow to grow your business, you can bridge the gap between slow payments, and have working capital if you are looking to start a new business. To learn more about debtor factoring or if you would like to discuss your business finance, call us today on 1300 884 100.

Debt Factoring FAQs

What is Debt Factoring?
Debt factoring also known as invoice factoring allows you to bring forward your accounts receivable and unlock immediate cash flow. Instead of waiting up to 90 days for payment, Key Factors debt factoring can fund your sales invoices in as quick as 4 hours. Having a more predictable cash flow allows your business to stay on top of operating expenses and grow.
How much does Debt Factoring cost?
Key Factors debt factoring service costs 1.4% for the first 14 days & 0.1% per day thereafter for up to 90 days. Get an instant quote or call us on 1300 884 100 to find out more.
How much do I get?
Up to 80% of the invoice value less 1.4% (fee for the first 14 days) is credited to you upfront. The remaining 20% of the invoice value less any accrued fees, is transferred to you when your customer pays us.
How fast can I get an approval for Debt Factoring?
A response is provided within 24 to 48 hours of receiving your application.
Will I be dealing with the same person from start to finish?
Yes. As a leading debt factoring company with over 30+ years of experience, we pride ourselves on providing tailored and personalised financial solutions through one-on-one relationships.
Will my credit rating affect my access to debt factoring services?
Getting your invoices financed is possible even when you don’t have the best credit rating. We are more interested in the credit history of your debtors than yours. That’s why debt factoring can be a great way to build your credit because you can use the funds to keep up with other debts and build up your credit.
What businesses should consider debt factoring?
Any business can benefit from debt factoring services. Fast and reliable cash injections that can help spur growth keep the business moving and meeting its financial obligations.
How Do I apply for invoice factoring?
You can call us on 1300 884 100 or fill out the enquiry form on our website, and we will be in touch to guide you through the signup process.

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