Invoice debtor finance is great for companies producing invoices and have commercial clients on accounts. Invoice debtor finance allows these businesses to maintain a constant cash flow despite payment delays.
At Key Factors we believe all companies can use invoice debtor finance to improve their cash flow, although some businesses may benefit more than others. These businesses relies on invoice debtor finance to service growth, and meet their operational expenses.
Businesses suitable for invoice debtor finance
Businesses with limited trading history may find it hard attain finance due to their limited trading history. If you are a start-up business with a high level of outstanding receivables and a large client base, Key Factors factoring finance may be the best solution to improve your working capital.
Like start-ups, SMEs may find it hard to gain sufficient finance support. Restrictive lending at times requires real estate security, or strong trading results. At Key Factors we assess the strength of your receivables, where the cash you access is directly proportionate to your sales.
Companies with high receivables
Cash tied up in unpaid invoices can restrict a business from further growth or getting on top of operating expenses. By factoring your invoices you can get up to 80% on the face value of your invoices, in as quick as 24 hours. This allows your business to maintain a more constant cash flow.
Companies with slow payments
Slow payments can put a halt on business operations and further expansion. Instead of waiting 30, 60 or even 90 days to get paid, factor your invoices today and release the cash tied up in your unpaid invoices, whenever you need it.
How does invoice debtor finance work?
- You invoice your customers for goods or services and send Key Factors a copy.
- The factor then gives you up to 80% of the value of the invoice.
- The remaining 20% of the invoice is credited to you as soon as the customer pays, less any accrued fees.
Call us now on 1300 884 100 to find out more about how debtor finance work.