Overview
Debtor finance is an innovative method of providing funding to businesses by using the value of their outstanding invoices as security. Did you know that almost 1 in 6 overseas businesses have a cash flow solution derived from debtor finance arrangements? Whilst that ratio has been significantly lower in Australia in the past, things are rapidly changing.
Debtor finance is ideal for:
- Business growth plans / acquisitions
- Purchasing stock and satisfying other regular overheads
- Debt refinancing / Payment of ATO debt
- Removal of personal property from business security
For most companies their outstanding invoices are by far their greatest asset. Click on these links to find out more about the features of debtor finance and how it works. When you’re ready, give our Business Specialists a call on 13 23 88 to find out how Liberty can help your business with its cash flow needs.
Features
Fast access to cash
Your business can access up to 90% of the value of its invoices within 24 hours, without changing your customers’ payment terms.
Increased funding
Debtor finance provides a higher level of funding than typical overdraft facilities.
Release of personal assets
There are no requirements for bricks and mortar security, allowing you to retain control of your home or other properties.
Control of customer relationships
Confidential facilities allow you to retain full control of your customer relationships, credit management and collections processes.
Additional cost savings
Cash advances allow you to negotiate supplier discounts or eliminate settlement discounts to your customers.
Comparable rates and costs
Costs include a discount fee (interest charge) on drawn funds, a service fee to cover ledger administration and an upfront application fee.
Assists a broad range of customers
Our customers are typically small to medium-sized businesses, across a wide range of industries, operating as registered companies with an annual turnover of $1 - $75 million.
Disclosure to customers
A choice of ‘confidential’ or ‘disclosed’ facilities.
Minimum facility size
$150,000.
How it works
Liberty Debtor Finance offers you an initial payment of up to 90% of the value of your eligible invoices. What's more, you will most often receive this payment within 24 hours of us processing your invoices. The remaining portion is paid to you when your customers settle their accounts. The process repeats itself as long as you provide periodic updates of your outstanding invoices.
