Invoice discounting is a form of debtor finance. It helps companies that have cash flow problems because customers are paying invoices in 30 to 90 days. Offering payment terms is expected when working with larger commercial and industrial customers. However, allowing customers to pay in 30 to 90 days can affect your cash flow if your financial reserves are […]
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What is Invoice Factoring?
Summary: Invoice factoring is a type of debtor financing that allows a company to finance its accounts receivable ledger. This financing is often used by companies that have cash flow problems because their clients pay invoices in net-30 to net-60 day terms. Factoring has been gaining popularity in Australia as a way to finance small […]
What is Debtor Finance?
Summary: Debtor financing is an umbrella term used in Australia that encompasses a number of products that finance invoices. The most common debtor finance solutions are invoice factoring and invoice discounting. Invoice factoring and discounting are used by companies that offer 30- to 60-day terms to customers but have problems waiting for payments. Debtor finance […]
How to Understand Invoice Factoring Costs
Invoice factoring has been gaining popularity in Australia as tool to finance businesses that need to improve their cash flow. In this article, we help you understand how debtor finance companies evaluate your business to determine what factoring rates to offer. However, keep in mind that each factoring company has its own underwriting criteria. What […]
How to Collect Invoices and Avoid Overdue Accounts
The invoicing and collections process is one of the most important jobs at any company. Growing companies have to be good at getting paid for their products/services. Timely payments provide you with the cash flow to pay wages, suppliers and other important expenses. Collecting unpaid invoices doesn’t have to take a long time or be tedious. With […]
Financing For Roofing Contractors
Summary: One of the challenges of working as a roofing contractor is that most clients pay you 30 to 60 days after you raise an invoice or progress claim. End employers and principal contractors often demand net-30 payment terms as a condition of working with them. However, this demand affects your cash flow and could […]
How to Finance a Construction Company (Subcontractor)
Summary: Getting paid is always a challenge in the construction industry, especially for subcontractors. Most construction subcontractors work with principal contractors and end employers under a contractual arrangement that uses progress claims. The subcontractor raises an invoice once a stage of the project is completed and then waits 30 to 60 days to get paid. […]
How to Choose the Right Debtor Financing Company
Debtor financing is an umbrella term that refers to a number of cash flow financing products. The two most common debtor financing products are invoice factoring and invoice discounting. Companies use debtor finance because they have financial problems due to slow-paying clients. Often, they need to offer net 30 terms to clients even though they can’t afford […]
Debtor Financing Costs Explained
Debtor financing is an umbrella term for two cash flow finance programmes called factoring and invoice discounting. These solutions allow your company to finance slow-paying invoices, which improves cash flow. This article helps you understand the rates and fees associated with these two solutions. This article assumes that you are familiar with how factoring and invoice […]
Differences Between Factoring and Invoice Discounting
Summary: Invoice discounting and invoice factoring offer financing based on your accounts receivable. Both products offer similar benefits to client. While there are similarities between these products, there are also a number of important differences. This article helps you understand the main differences between factoring and invoice discounting so that you can make an educated […]