debtor finance
Debtor Finance To Propel Growth
Only pay as you use
No lock-in contracts
Funds in 4 Hours
How Does Debtor Finance 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 Debtor Finance works

Debtor Financing

When you need the best advice on all things invoice debtor finance, make sure you talk to us here at Key Factors first. As one of the largest independent and privately owned factoring companies in Australia, we have been assisting clients just like you with our services since 1989. We are proud of our track record, in providing tailored and personalised financial solutions, and the reputation we have built in the local community for providing the very best in personal service, like our advice on using debtor finance to propel the growth of your business. Call our highly experienced team on 1300 884 100, and let us explain how we can help you with invoice debtor finance today. Services we offer include invoice factoring, debtor finance, invoice discounting, invoice financing, selective invoice financing, debt factoring and more!   Timely payments are a critical factor in the success of new, small and medium businesses. Delayed and slow payments can hinder the growth of the business by cutting cash flow and minimising the business’s ability to keep up with supplies. Traditionally, businesses have turned to banks for loans to help them stay afloat. But this comes with a downside. Whereas the business gets the cash it needs to stay afloat, it adds to its monthly overheads because it has to pay the principal and interest of the loan.   Invoice debtor financing is a more practical and straightforward way for businesses to get working capital quickly by releasing the cash they have tied up in unpaid invoices.

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

Enquire Now

Benefits of Debtor Finance

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

Debtor Finance – What Is It?

If slow payments are hindering the growth of your business, invoice debtor finance is a simple way to improve working capital quickly, by releasing the cash tied up in your unpaid invoices. The amount you receive is based on your current and outstanding invoices, and when an invoice is paid by your customers, the credit amount owing is then automatically reduced. At Key Factors, your debtor finance is scalable and more aligned to your sales, so when your business grows, so does your debtor finance facility, reducing the strain on cash flow, and giving you more access to funds to help your business grow further, or for any other business purposes. Invoice debtor finance is available for any solvent company in Australia, and suitable for a wide range of businesses across many industries.
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

How Invoice Debtor Finance Can Work For You?

There are many fantastic benefits that invoice debtor finance offers. For starters, it is incredibly flexible, giving you a line of credit that can grow as your business sales grow. With Key Factors, we do not require fixed assets as collateral, and our team can tailor your invoice debtor finance to suit your business needs and overall situation, giving you convenient cash using the strength of your accounts receivable. With our hassle-free debtor finance, you can have funds within 4 hours. Invoice debtor finance is also ideal for small or less established businesses, who need help with credit control.

Experience The Benefits For Yourself

Typically, payment terms are anywhere from 30 to 90 days, or longer if the invoice is quite large or your business offers extended payment terms to your customers. So, if you are sick of waiting for your payments to come, or find yourself out of pocket when they come in late, it is time to think about using invoice debtor finance, to release the capital that is tied up in your outstanding invoices. In layman’s terms, it means we can help you to access the money you have already earned, much faster. With Key Factors, our services are not as expensive as you might think! For a quote on debtor finance today, you can do it online, or call one of our team today on 1300 884 100.

What is Debtor Financing?

Debtor financing is a business funding solution that allows the business to receive an advance on its unpaid invoices. The advance extended to the businesses can be used to pay suppliers, stock inventory, or take advantage of strategic opportunities that could help with the growth of the business. Compared to traditional business loans or overdrafts, this type of funding is more flexible and only limited by the number and value of invoices you raise. The more sales you make, the more credit you can access. Key Factors offers industry-leading debtor finance solutions for businesses in different industries in Australia. With our debtor finance options, you can reduce strain on cash flow by getting access to funds that will scale your business. This funding option is available for any solvent company in Australia, and you can use the funds for a wide range of business activities.

How Does Debtor Financing Work?

Debt financing might work differently depending on the factoring company you use. But generally, the process works by using unpaid sales invoices as collateral to access immediate funding. With Key Factors, such funding can be availed in as little as 4 hours, ensuring businesses in dire straits can get the funds they need to continue running or make payroll. The process begins when you make a sale and send the client an invoice. You will then send a copy of the unpaid invoice to the debtor finance company, which will provide an advance of up to 80% of the value of the invoice. When the customer pays the invoice, we will send you the invoice balance minus our fees. There are two types of debtor finance;
  • Debt factoring
  • Invoice discounting
Both options allow businesses to raise capital based on the value of their outstanding invoices. But they have different benefits and features.

Debt factoring

This is a more suitable option for small businesses using their account receivables to overcome cash flow crunches. The most significant difference between factoring and discounting is the responsibility for collecting on the invoice. With invoice factoring, the finance company may handle account management and collections. Here’s how the process works in five simple steps;
  1. You invoice your customer as usual
  2. You send a copy of the invoice to Key Factors
  3. You receive an advance of up to 80% of the invoice value
  4. Your customer pays the factoring company when the invoice is due
  5. We will send you the remaining invoice balance minus our fees.
In invoice factoring, the payment is made in two instalments. The first instalment is when you submit the invoice, and the second one is when the customer pays the invoice.

Invoice discounting

Invoice discounting is mainly used by larger companies with dedicated accounts and collections departments. Invoice discounting allows you to access up to 80% of the invoice value upfront. The remaining balance is released when the customer completes the payments. Unlike debt factoring, you are responsible for collecting payment on the invoice. Here’s how invoice discounting works;
  • You make a sale and invoice your customer as usual
  • Submit the invoice to the finance company
  • Receive an advance of up to 80% of the invoice value
  • Collect payment from your customer
  • Payment is made directly to the factor or into a dedicated factors account.
Depending on the factoring company you choose to work with and the terms and conditions you agree to, both methods of debtor finance can be funded as a lump sum or as a revolving line of credit. This funding option benefits businesses that need regular funding to fuel their growth plans. Also, the line of credit increases the longer you stick with the factoring company and the more you raise invoices. The fees involved with debtor finance depend on the value of your invoices, the duration of the funding facility, and your customers’ credit scores.

Advantages of Debtor Financing

Debtor finance is a vital tool to the success of emerging, small and medium establishments. It provides unique features and benefits away from the traditional, bureaucratic alternatives of sourcing funding from banks. Some of the benefits of debtor financing include:

You get additional cash flow for business growth

A healthy cash flow underlines the success of every business. Being able to meet the supply demands of new and existing customers on time is crucial for building the business’s reputation and trust. Through debtor finance, you can maintain a positive cash flow at all times by leveraging the value of your unpaid invoices. The business can always meet its obligations to its clients without taking out additional loans and take advantage of any strategic opportunities that arise.

Bridge the gap of slow payments

Late payments can cripple a business. While there’s an option to take legal action against debtors who don’t pay on time, you will only be adding to the costs of running your business and prolonging the payment of the invoice. Debtor finance can help you bridge the gap of slow payments and provide a lifeline for your business as your clients work on paying the invoices. The factoring company can help with the recovery of the invoices from the customer while you focus on growing your business and getting new customers for the business.

Quick disbursement

When you apply for debt financing, the disbursement of money is quick and timely. Key Factors ensures you get up to 80% of the value of the invoices you have submitted within 4 hours. The timely disbursement of funds means the business doesn’t have to lose customers as they wait for funds to be processed and deposited into their accounts. This benefit also means that businesses strained for cash and staring down at collapse can get a quick injection of cash to help them get back on their path to success.

Working capital for start-up companies

Debtor finance is an excellent option for companies to acquire working capital without compromising their balance sheet strength. Taking too many short-term loans to cover high levels of short-term receivables isn’t healthy for the business. With debtor financing, you can free up locked funds without disrupting the asset-liability balance. Also, the quick disbursement and high predictability of debtor finance services ensure the business has a reliable source of funds to keep up with operations.

Meeting operating expenses

Operating expenses take up a substantial chunk of every business’s revenue. Without timely payment of invoices, businesses can struggle to pay the most essential bills to keep them operational. Using debtor finance can give the business the money it needs to keep the lights and equipment running while waiting for the clients to clear the invoices. The best part about it is the business doesn’t have to take up debt to meet its operating expenses.

Get on top of ATO obligations

Debtor financing can also help you stay on top of your ATO obligations. If you have an ATO debt that you’re trying to catch up with, having a reliable source of funds to ensure you make timely payments is vital in restoring good standing with the ATO and ensuring your business doesn’t incur hefty penalties and fines.

Pay wages on time

The funds you get from leveraging invoices are more flexible, and you can use them for various functions in the business, including making payroll. Your employees are a vital part of your company’s success, and ensuring they’re happy and feel taken care of should be a priority for every business. But budding businesses trying to juggle new clientele, running costs, and payroll might find themselves shorthanded, especially when clients don’t pay the invoices on time. Using debtor financing, you can get the funds you need to make payroll in a matter of hours and ensure you keep your employees happy and motivated to keep working for you.

Debt Financing Vs Equity Financing

Debt and equity financing are the two main methods companies use as financing options. Some companies use a combination of both, but it’s crucial to understand the features and benefits of each financing option to maximise the benefits depending on the needs of your business.

Equity financing

Equity financing involves selling a portion of the company’s equity in return for capital. The company owner can decide to give up a percentage of the company and sell it to an investor in return for capital. That investor would, therefore, own that percentage of the company and have a voice in all the business decisions going forward. The main advantage of this type of financing is there is no obligation to repay the money you acquire through it. Also, equity financing places no additional financial burden on the company. Since there are no required monthly payments associated with equity financing, the company has more available capital to invest in the growth of the business without worrying about monthly payments.

Downsides of equity financing

However, the downsides of equity financing are quite substantial. First, you have to give a percentage of the company to the investor to get funding. You will have to share profits and consult with your new partners whenever you want to make decisions affecting the company. The only way you can remove the investors is to buy them out. But that will likely be more expensive and require substantially more money than they gave you.

Debt financing

Debt financing involves borrowing money and paying it back with interest. It is the most commonly used financing method because of how accessible it is. The most common form of debt financing is a loan. Although highly preferred because the company doesn’t have to share equity or distribute control, it places restrictions on the company’s activities, which may prevent it from taking advantage of opportunities outside its core business. When considering debt financing, companies must remember that they look favourably at a relatively low debt-to-equity ratio, which benefits the company should it need additional debt financing in the future. Debt financing has numerous benefits. You don’t give the lender any control over your business. Once you pay back the loan, your relationship with the financier ends. Also, the interest you pay on a loan is tax-deductible, and you can easily forecast your expenses because the loan payments don’t fluctuate.

The downsides of debt financing

The downside of debt financing is that it is a gamble. You’re betting on your company’s success and future ability to pay back the loan. What if the company hits hard times? Debtor financing is an alternative third option that mitigates the risks associated with both of these financing methods, providing you with flexibility without tying you down or forcing you to give up chunks of your business.

Why We are the Leading Debt Financing Company in Australia

Part of getting the best experience with debtor financing is to find a good factoring company to work with. In Australia, Key Factors is the leading and largest independent and privately owned factoring company. We’ve been providing businesses with effective financial solutions for years and use our experience to provide the best advice to businesses on all things invoice debtor finance. Some of the features that make us the best debtor finance company in Australia include the following;
  • No property security required – We don’t require any assets as collateral. The copies of unpaid invoices you supply to us are enough. You maintain full control of your assets and the flexibility to take advantage of any opportunities that come up.
  • No hidden costs – We are upfront and straightforward about our fees. No surprise or hidden fees.
  • No lock-in contracts – Our service is fully flexible. You can use it as long as you need to or for a short period of time. You can choose the invoices you want to finance and the ones you don’t. You have full autonomy over your business’s future success.
  • No use, no fee – You only pay a fee when you use our debtor finance service. You don’t incur any fees when you’re not using the service, making us a preferred option for businesses that require this type of financing option intermittently.

Debt Finance FAQs/h2>

What is Debtor Finance?
Debtor finance helps to improve your business working capital by releasing the cash tied up in your unpaid invoices. This curb the problem of slow payments that can hinder the growth of the business. Key Factors’ debtor finance is more aligned to your sales, so as your business grows so does your debtor finance facility and access to funds.
How much does Debtor Finance cost?
Key Factors debtor finance 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 Debtor Finance?
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 invoice factoring company with over 30+ years of experience, we pride ourselves on providing tailored and personalised financial solutions through one-on-one relationships.
How much does debtor finance cost?
Key Factors charges a fee of 1.4% for the first 14 days and 0.1% per day after that up to 90 days. You can get a comprehensive quote by calling us on 1300 884 100.
How much do I get?
Up to 80% of the invoice value, less our 1.4% fee for the first 14 days, is credited to your account upfront. The remaining 20%, less any accrued fees, is transferred to you when your customer pays us.
How fast can I get approval for debtor finance?
We will provide you with a response within 24 to 48 hours of receiving your application. Once approved, we will transfer the funds within 4 hours.

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