DEBTOR AND INVOICE FINANCE
Are you always chasing your customers for payments on outstanding invoices?
It’s natural in most businesses that sometimes you may have to chase payments on your outstanding invoices. This can dramatically affect the cashflow of your business. We understand that your income is there and its coming. it’s just taking longer than usual to be paid from your customers. This results in you always being behind in paying your customers or even worse, your staff.
We’re here to help.
DEBTOR AND INVOICE FINANCE
Are you always chasing your customers for payments on outstanding invoices?
It’s natural in most businesses that sometimes you may have to chase payments on your outstanding invoices. This can dramatically affect the cashflow of your business. We understand that your income is there and its coming. it’s just taking longer than usual to be paid from your customers. This results in you always being behind in paying your customers or even worse, your staff.
We’re here to help.
At Yakka Finance, we are specialists in Debtor and Invoice Financing. Debtor and Invoice Finance, put simply, allows businesses to get immediate cash advances against your oustanding invoices. This can increase your cashflow and bring in enough working capital to pay for your ongoing company expenses. For growing businesses, it can be a massive help with cashflow.
There are two common ways of debtor and invoice financing within your business:

Invoice Factoring

Invoice Discounting
Our Specialists are always free to discuss whether Debtor and Invoice Finance is a viable option for your business.
At Yakka Finance we are dedicated to making Debtor and Invoice Finance as stress-free and seamless as possible. We will act on your behalf to secure you the best available option to suit the needs of your business.
At Yakka Finance, we are specialists in Debtor and Invoice Financing. Debtor and Invoice Finance, put simply, allows businesses to get immediate cash advances against your oustanding invoices. This can increase your cashflow and bring in enough working capital to pay for your ongoing company expenses. For growing businesses, it can be a massive help with cashflow.
There are two common ways of debtor and invoice financing within your business:

Invoice Factoring

Invoice Discounting
Our Specialists are always free to discuss whether Debtor and Invoice Finance is a viable option for your business.
At Yakka Finance we are dedicated to making Debtor and Invoice Finance as stress-free and seamless as possible. We will act on your behalf to secure you the best available option to suit the needs of your business.
What’s our promise to you?
We promise our service and expertise will save you time and money as we handle the entire finance process for you.
At Yakka Finance we take the time to get to know our customers and their business requirements before securing the right Debtor or Invoice Finance solution.
*Conditions apply. Subject to credit approval.
The Team at Yakka Finance are available at all hours to take your call. Please contact our Debtor and Invoice Finance Specialists on 1300 842 911 or by email at scott@yakkafinance.com.au for a quote today!
What’s our promise to you?
We promise our service and expertise will save you time and money as we handle the entire finance process for you.
At Yakka Finance we take the time to get to know our customers and their business requirements before securing the right Debtor or Invoice Finance solution.
*Conditions apply. Subject to credit approval.
The Team at Yakka Finance are available at all hours to take your call. Please contact our Debtor and Invoice Finance Specialists on 1300 842 911 or by email at scott@yakkafinance.com.au for a quote today!
Frequently Asked Questions
Our most commonly asked questions answered below:
-
Debtor finance can provide fast funds to smooth out fluctuations in cash flow in your business. This form of finance means your business can receive payment on invoices within one to two business days once the facility is established. You can then see a big improvement in your cash flow position which will benefit the company and the take the time and effort away from chasing invoices.
In other areas you can obtain discounts by being an early payer from suppliers/creditors. When you are paid on time it allows for other areas of your business to also flow.
-
Debt factoring is more suitable for small businesses looking to overcome cash flow gaps using their accounts receivable.
The most significant difference between factoring and discounting is the responsibility for collecting on the invoice. With invoice factoring, the finance company will handle account management and collections.
You can access up to 95% of the invoice value within 24 hours.
Here’s how debt factoring works in 5 simple steps:
- Step 1: Invoice your customer as normal
- Step 2: Send the invoice to the finance factoring company
- Step 3: Receive an advance of up to 95% on the invoice value
- Step 4: Your customer pays the finance factoring company when the invoice is due
- Step 5: The remaining invoice balance is released to your account when it is actually paid minus any feesfrom the finance factoring company
Invoice factoring payments are typically made in two instalments. The first is made when you submit the invoice, and the second once the customer has paid the invoice.
-
Invoice discounting is generally used by larger companies with a dedicated accounts and collections department.
You can access up to 85% of the invoice value upfront, with the remaining balanced released when the customer completes the payment.
Unlike debt factoring, you are responsible for collecting payment of the invoice.
Here’s how invoice discounting works in 5 simple steps:
- Step 1: Invoice your customer as per normal
- Step 2: Submit the invoice to the finance company
- Step 3: Receive a cash advance of up to 85% of the invoice value
- Step 4: Collect payment from your customer
- Step 5: Repay the finance company the amount advanced plus fees
Both invoice discounting and debt factoring advances can be funded as a lump sum or as a revolving line of credit. This can be beneficial for businesses that need regular funding to fuel their growth plans. The line of credit increases as you raise more invoices and decreases as your customers make payments.
The fees involved with factoring and discounting depend on the dollar value of your invoices, the duration of the funding facility, the credit scores of your customers, and the type of debt finance.
In general, debt factoring costs more than discounting because of the collections and account management services is an additional service that is included.
-
Most businesses qualify for Invoice & Debtor Finance. If you are a business that is looking to improve their cashflow by getting your invoices paid on time rather than in 30 to 60 days. Please get in touch with one of our specialists on 1300 842 911
-
The great benefit of debtor finance is your outstanding invoices form the basis of your collateral. No property security is required. Financiers usually require a General Security Deed (an agreement between you and the lender), a director’s guarantee and indemnity, and most importantly, the assignment of your accounts receivables debt to the lender. That’s it!
-
The costs of a debtor finance facility are highly individualised, based on the quality of your business, the quality and number of your debtors, and the type of finance you are seeking, but in general, are comparable to an unsecured bank overdraft.
A key difference between an overdraft and a debtor finance facility is the debtor finance facility generally grows as the business grows and debtors become larger. If you have many customers with good credit, who pay their bills on time, the financier’s risk and their costs will be lower.
If your business is struggling and needs cash to get back on top, lenders will reflect that risk in their rate. If you seek invoice discounting (a confidential loan) rather than factoring, lenders will potentially charge more for the perceived risk of debt collection. And lastly, if you are seeking finance on the whole of turnover (all your receivables), costs may be lower than selective invoice finance.
While the terminology may vary between lenders, invoice discounting and factoring fee proposals typically include a due diligence fee, a service fee, a discount fee, and an annual minimum fee. More fees do not necessarily mean a higher total cost. It is critical to consider the total of each of the fees together on the debt facility.
- Due Diligence: This fee is only paid if you accept the financier’s proposal and covers the cost of credit reviews, filings, and credit line preparation. Clearly, more complex businesses with larger credit lines will require greater due diligence costs.
- Service fee: The service fee is a percentage of each invoice that is financed. The rate is determined by factors such as the size of your line, your industry, credit quality of debtors, and individual considerations. Rates generally range from 0.30% to 3% per invoice.
- Discount fee: The discount fee is essentially the interest rate on the funds advanced on your debtors, not the whole value of your receivables. The rate is commonly determined using a major bank indicator rate as the base plus an additional percentage determined by the financier. The discount fee (interest rate) is calculated daily but charged monthly, however not all lenders charge this fee.
- Annual minimum fee: An annual minimum fee is simply the amount your financier projects they will make from your debt facility. You often won’t be charged this fee unless the service and discount fees are lower than this projection.
-
Debtor finance facilities may be ongoing, tailored to meet the specific needs of your business, or sometimes have a fixed, generally 12-month term. Competition is now forever changing this requirement with more ‘come-and-go’ style facilities becoming popular offerings to choose.
Repayments are generally not fixed, as these are made by trade debtors, rather than your business. The lender controls 100% of the payments made by debtors and refunds to your business the balance of the payments once their fees and interest have been paid.
-
A new bank account may be required in the case of invoice factoring when the finance is disclosed to debtors. If your business secures confidential invoice discounting finance, your normal bank account will continue to receive payments.
-
Loan limits are generally 70-95% of the value of your debtor ledger. The amount of your loan will depend on the value of your ledger bringing flexibility with your growth – the more sales you make, the more you can draw on you debtor finance facility.
Frequently Asked Questions
Our most commonly asked questions answered below:
-
Debtor finance can provide fast funds to smooth out fluctuations in cash flow in your business. This form of finance means your business can receive payment on invoices within one to two business days once the facility is established. You can then see a big improvement in your cash flow position which will benefit the company and the take the time and effort away from chasing invoices.
In other areas you can obtain discounts by being an early payer from suppliers/creditors. When you are paid on time it allows for other areas of your business to also flow.
-
Debt factoring is more suitable for small businesses looking to overcome cash flow gaps using their accounts receivable.
The most significant difference between factoring and discounting is the responsibility for collecting on the invoice. With invoice factoring, the finance company will handle account management and collections.
You can access up to 95% of the invoice value within 24 hours.
Here’s how debt factoring works in 5 simple steps:
- Step 1: Invoice your customer as normal
- Step 2: Send the invoice to the finance factoring company
- Step 3: Receive an advance of up to 95% on the invoice value
- Step 4: Your customer pays the finance factoring company when the invoice is due
- Step 5: The remaining invoice balance is released to your account when it is actually paid minus any feesfrom the finance factoring company
Invoice factoring payments are typically made in two instalments. The first is made when you submit the invoice, and the second once the customer has paid the invoice.
-
Invoice discounting is generally used by larger companies with a dedicated accounts and collections department.
You can access up to 85% of the invoice value upfront, with the remaining balanced released when the customer completes the payment.
Unlike debt factoring, you are responsible for collecting payment of the invoice.
Here’s how invoice discounting works in 5 simple steps:
- Step 1: Invoice your customer as per normal
- Step 2: Submit the invoice to the finance company
- Step 3: Receive a cash advance of up to 85% of the invoice value
- Step 4: Collect payment from your customer
- Step 5: Repay the finance company the amount advanced plus fees
Both invoice discounting and debt factoring advances can be funded as a lump sum or as a revolving line of credit. This can be beneficial for businesses that need regular funding to fuel their growth plans. The line of credit increases as you raise more invoices and decreases as your customers make payments.
The fees involved with factoring and discounting depend on the dollar value of your invoices, the duration of the funding facility, the credit scores of your customers, and the type of debt finance.
In general, debt factoring costs more than discounting because of the collections and account management services is an additional service that is included.
-
Most businesses qualify for Invoice & Debtor Finance. If you are a business that is looking to improve their cashflow by getting your invoices paid on time rather than in 30 to 60 days. Please get in touch with one of our specialists on 1300 842 911
-
The great benefit of debtor finance is your outstanding invoices form the basis of your collateral. No property security is required. Financiers usually require a General Security Deed (an agreement between you and the lender), a director’s guarantee and indemnity, and most importantly, the assignment of your accounts receivables debt to the lender. That’s it!
-
The costs of a debtor finance facility are highly individualised, based on the quality of your business, the quality and number of your debtors, and the type of finance you are seeking, but in general, are comparable to an unsecured bank overdraft.
A key difference between an overdraft and a debtor finance facility is the debtor finance facility generally grows as the business grows and debtors become larger. If you have many customers with good credit, who pay their bills on time, the financier’s risk and their costs will be lower.
If your business is struggling and needs cash to get back on top, lenders will reflect that risk in their rate. If you seek invoice discounting (a confidential loan) rather than factoring, lenders will potentially charge more for the perceived risk of debt collection. And lastly, if you are seeking finance on the whole of turnover (all your receivables), costs may be lower than selective invoice finance.
While the terminology may vary between lenders, invoice discounting and factoring fee proposals typically include a due diligence fee, a service fee, a discount fee, and an annual minimum fee. More fees do not necessarily mean a higher total cost. It is critical to consider the total of each of the fees together on the debt facility.
- Due Diligence: This fee is only paid if you accept the financier’s proposal and covers the cost of credit reviews, filings, and credit line preparation. Clearly, more complex businesses with larger credit lines will require greater due diligence costs.
- Service fee: The service fee is a percentage of each invoice that is financed. The rate is determined by factors such as the size of your line, your industry, credit quality of debtors, and individual considerations. Rates generally range from 0.30% to 3% per invoice.
- Discount fee: The discount fee is essentially the interest rate on the funds advanced on your debtors, not the whole value of your receivables. The rate is commonly determined using a major bank indicator rate as the base plus an additional percentage determined by the financier. The discount fee (interest rate) is calculated daily but charged monthly, however not all lenders charge this fee.
- Annual minimum fee: An annual minimum fee is simply the amount your financier projects they will make from your debt facility. You often won’t be charged this fee unless the service and discount fees are lower than this projection.
-
Debtor finance facilities may be ongoing, tailored to meet the specific needs of your business, or sometimes have a fixed, generally 12-month term. Competition is now forever changing this requirement with more ‘come-and-go’ style facilities becoming popular offerings to choose.
Repayments are generally not fixed, as these are made by trade debtors, rather than your business. The lender controls 100% of the payments made by debtors and refunds to your business the balance of the payments once their fees and interest have been paid.
-
A new bank account may be required in the case of invoice factoring when the finance is disclosed to debtors. If your business secures confidential invoice discounting finance, your normal bank account will continue to receive payments.
-
Loan limits are generally 70-95% of the value of your debtor ledger. The amount of your loan will depend on the value of your ledger bringing flexibility with your growth – the more sales you make, the more you can draw on you debtor finance facility.
Contact Us
Please feel free to contact the team at
Yakka Finance 24/7
(02) 9241 5477
Suite 5, Level 1
345 Pacific Highway, North Sydney NSW 2060
Contact Us
Please feel free to contact the team at
Yakka Finance 24/7