Introduction to Debtor Finance
Relion Finance’s Debtor Finance provides businesses the option to manage sustained growth. Debtor Finance is based on the value of a business’ accounts receivables ledger and is when a business sells their invoices in exchange for cash that can be used to help manage and grow the business. With Relion Finance Debtor Finance, a business doesn’t need property to qualify as the invoices themselves are used as security.
Reasons why you would use debtor / invoice finance or factoring
- You are busy but there doesn’t seem to be money in the bank
- A number of larger clients have been slow in paying and that has placed increased strain on your cash flow
- You’re unable to take on larger orders because that would mean you would employing more staff and paying more suppliers
- The bank has offered to help but only if they take additional security against your property
- You would like to take advantage of early payment discounts with creditors and suppliers
- Your credit history may be poor or insufficiently established
- Tailored facilities that start from $50,000
- Use multiple cash flow products to improve business growth
- Flexible terms and structures
- Immediate access to additional cash
- Property security is not required to qualify
- Eliminate or reduce your business overdraft
- Both International and Australia-wide funding available
- Enjoy the benefits of supplier discounts by making early repayments
- Have access to cash as your business needs it (e.g. managing seasonal cash flow)
Our Solutions
For businesses that don’t necessarily have the capacity, nor wish to recruit, personnel to manage their debtors’ ledger.
For established businesses that already manage their accounts receivables book.
A good solution for well established businesses looking to outsource their debtor administration.
For smash repairers and panel shops requiring cash tied up with insurance companies and corporate fleet invoices.
Import Debtor Finance services to facilitate businesses trading internationally.
Grow your business and take on larger orders, avoid suspended credit accounts and pay your suppliers on time.
Make use of your purchase order, supply agreement or contract as collateral.
How it works
1. You create goods or perform a service
2. You invoice your customer
3. You then send a copy of the invoice
4. We pay you up to 90% of the invoice within 24 hours
5. Your customer pays the invoice
6. We then pay you the balance
Key Features and Benefits
- Funds to you within 24 hours of invoicing – no more waiting up to 120 days for payment
- Meet payroll and supplier expenses
- Free up real estate security. Real estate (plant/equip) security is not a requirement
- Enables early payment discounts from suppliers+ economies of scale through bulk buys
- Optimize stock levels and workflow
- You can receive debtor financing even if you have only 1 or 2 customers
- 24hr online access to your account, so you can view & submit funding requests at your own convenience.
- The product is fully tailored to suit your circumstances.
- Flexible line of credit which grows as sales grow (not restricted by real estate value).
- Various bank and non-bank options to cater for most customers.
The information provided by Relion Finance is not financial advice. We provide information of a general nature only. If you require information specific to your situation please consult with your Accountant or Financial Planner.
