Debtor Finance Advisers is a division of Mayfair Finance Australia Pty Ltd
We have extensive experience in sourcing Debtor Finance facilities across a wide range of Industries.
Also known as invoice financing, invoice discounting, cashflow finance, supply chain finance or factoring.
Whatever the term you have heard, they all work on the same principal, using your Debtor Book as Security, to unlock the cash in your business.
For most businesses, their outstanding Invoices (Debtors) are one of their greatest assets which is often frustratingly inaccessible, which can cause ATO arrears, Superannuation arrears and other Supplier (Creditor) issues.
How It Works
•Debtor Finance is an innovative method of providing working capital funding to businesses by using the value of their outstanding invoices as security.
•Debtor Finance provides your business with cash sooner. You are advanced up to 85% of your outstanding invoices you raise on a daily / weekly basis, with the cash becoming available within 24/48 hours.
•Each Debtor Finance Lender has their own guidelines and limitations regarding what Industries and Transactions they fund.
•At Mayfair Finance Australia we invest the time to understand your business and the working capital mismatch in your own specific business. We then discuss the opportunity with several of the most suitable Debtor Finance Lenders to ensure we match the funding, structure and pricing to your specific needs. We then present you with the best 3 proposals and discuss the pro’s & con’s of each.
Some of the primary Industries suitable for Debtor Financing are:
•Transport & Logistics
•Freight Forwarders
•Recruitment / Labour Hire
•Manufacturing
•Wholesalers
•Distributors
•Importers
•Exporters
•Business Services
•Professional Services
Basically if you’ve got a Debtor Book this facility could work exceptionally well for you.
Ability to support Existing or even Start Up businesses.
Some of the facility options available include:
•Confidential facilities
•Disclosed facilities
•Combined Trade Finance & Debtor Finance facilities
•Single Invoice Factoring
•Contract/ Progress Draw Debtors
•Higher Debtor Concentrations >33%
•Fixed Price & Variable Price facilities
•Some Lenders have the capability to assess your customers ability to pay, potentially reducing the risk of bad debts
•Debtor Insurance to minimise your bad debt risk
Why Debtor Finance? This facility is ideally suited in the following circumstances:
•Rapid sales growth squeezing working capital
•To support businesses looking to expand
•Labour intensive businesses where wages have to be met well ahead of payment receipts
•Leverage your Debtors to enhance your cash flow position.
•As your business grows, the Debtor Finance facility grows with it
•Businesses looking to standalone
•Debtor Finance, unlike Overdrafts, does not require real estate security (in 95% of cases)
•Businesses outgrowing their available equity in Property or Plant & Equipment
•Removal of personal property from business security
•Release or reduce the reliance on property securing the business and enable you to leverage this property to build wealth outside of the business
•Replacing or reducing debt secured by the family home
•Management / Partner buy-out
•Unlock your business assets to fund acquisitions / mergers
•Ownership changes and succession
•A stand alone facility that can sit alongside other business borrowings (such as long term loans, leasing)
•Fast access to your Debtor’s outstanding Invoices – no more waiting 30, 60 or 90 days.
•Debtor Finance is a self-liquidating facility, meaning that your company isn’t technically taking on any additional debt. In theory if you decided to close your business tomorrow, your Debtor Finance facility should be repaid in full as your Debtors pay their Invoices.
•Fast access to the cash tied up in your Debtor’s (outstanding Invoices) – no more waiting 30, 60 or 90 days.
