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Debtor and Invoice Finance

Debtor financing is quickly gaining momentum and popularity in the Australian market. Why? It’s a clever way to finance small and medium businesses that require working capital. It’s natural in business that sometimes you have to chase payments on invoices. A Debtor Finance solution allows you to finance slow-paying invoices, which can then provide immediate funds to pay for your ongoing company expenses. At Yakka Finance, we can explain the step by step process of obtaining a Debtor or Invoice Finance facility and see if it works well for your business.

What is Debtor finance and how does it help me?

Debtor finance is a lending product that can help a company by financing its unpaid invoices.

Their are two common ways of debtor financing within your business. One is Invoice Factoring and the other is Invoice Discounting. These two solutions are similar in that they provide the same solution just in a different way and have different features.

Invoice factoring is best used with smaller companies that continue to have cash flow problems. This specific solution combines three services – funding, credit advise and collections assistance. Invoice factoring operates by financing invoices individually, usually in two seperate payments. The first payment covers 80% of the total invoice and is deposited back in to your bank account very shortly after processing.

The second payment, the remaining 20%, is deposited to your account as soon as your client who was originally invoices pays your invoice in full. This second payment will settles that specific invoice. Most small companies will use invoice factoring frequently to improve their cash flow on an ongoing basis.

Invoice discounting is used by companies that are normally much larger. They already have established credit and collections procedures within the company. This solution will only provides the upfront funding for the company on their invoices. Internal staff of a larger company will handle all the collections rather than the staff of the invoice finance company chasing payments.

The Debtor/Invoice finance company make their money both from the interest they charge on the loan and a monthly management fee to maintain the arrangement.

How can YAKKA Finance help you and your business moving forward?

Step 1: Upload your Invoice

Step 2: Receive 80% Payment of your Outstanding Invoice

Step 3: The remaining 20% of your invoice is paid to you once the original invoice is paid in full

Get paid for your outstanding invoices now rather than waiting

Suits businesses that have long credit terms with their customers to receive payment on their invoices. For instance, 90 Day Payment Terms

Increases Cashflow and Working Capital for businesses

Acceptable to a wide variety of industries including Manufacturing, Labour Hire, Importing, Recruitment, Plant & Equipment Hire, Building & Construction, Wholesaling and many more

The level of funding can increase with your turnover and increase your power to negotiate discounts with your suppliers

We are always free to discuss Debtor Finance as a viable option for your business. No obligations and Free advice

*Conditions apply. Subject to credit approval.

We are available at all hours to take your call. Please contact Scott on 0401214427 or by email at scott@yakkafinance.com.au

Frequently Asked Questions

Why should I use Yakka Finance to help with my purchase?

Yakka Finance are specialists in Debtor and Invoice Finance. We know each and every industry that this lending product suits and how it can benefit their businesses moving forward. We take the time to know every banks rates and policies on Debtor Finance to make your application process informative, cost effective and effortless. Having one point of contact for all your financing needs is a great feeling and we pride ourselves on delivering that promise.

In our experience from our clients when comparing with the banks is that we will take on any scenario no matter what your situation and we strategically know how to grow your business as quick or as slow as you need. Our selection of a wide variety of lenders is there to fit every customer that engages in our services. Let us assist you and show you the Yakka Finance Difference.
What determines the interest rate?
The question we always like to highlight and educate our clients about is what actually dictates the interest rate the banks will charge. Here are a few key variables in how the interest rate can change in Debtor Finance.
1. How long you have been in business for e.g. New Business or Established Business
2. Your monthly turnover
3. Your specific Industry
4. Your payment terms with the businesses you deal with
5. Whether you decide on Invoice Factoring or Invoice Discounting
How much can I borrow?
How soon can I get approved?

We pride ourselves on fast approvals. We can have confidence in saying that we can get you approved in as little as 24 hours. Having strong relationships with every bank due to the volumes we give them and how well we put together our applications ensures faster turnaround times. Realistic turnaround times on the average application at Yakka Finance are between 6-48 Hours depending on your specific application. If you want to see how fast we can move call us today!
Why don't I just go direct to my bank for the finance?
Although we are more than happy for you to go to your bank to obtain the finance we know that it almost always doesn’t deliver the best outcome for your business. Here are the key reasons why:
1. You could end up going to the wrong bank who would charge you a much higher interest rate and make you jump through a lot more hoops for an approval. Yakka get an understanding of your business and what you are purchasing and then take you to the most appropriate bank
2. It’s important to spread your loans across multiple banks. Why? It means that one bank never owns your business and instead we have multiple banks fighting for your business instead. This lowers rates and lets you dictate how you run your business and not the other way round.
3. One bank will have a better rate than another bank
4. You will spend a lot more of your own time putting an application together from the bank with no idea if you will get an approval
5. You have one point of contact for every equipment purchase you do. Staff always change in banks as new roles are given. Have the comfort of someone that knows your business back to front and have your best needs in mind.
What if I have a bad credit rating?

In life sometimes things don’t go your way. With most of our clients if they get a Default on their file there is normally a good reason behind the default and why it’s there. Some people are unlucky with Energy Bills when they change of address, have a dispute on a Phone Bills where they charged to much. We get an understanding of why your Credit Rating is below the average and then effectively communicate to the appropriate bank as to why it’s there and still get loans approved. Have comfort that we have the right lenders on our panel to get you approval even with a default on your credit file.