Debtor finance is a great way to leverage cash out of the debtors currently within your business and is a very popular way to fund growth in the US and the UK. Debtor finance is ideal for start-ups and established businesses alike. At Greenwich Finance, we have great relationships with the major players offering debtor based financing and can help you to secure the best finance solution available for you.
Debtor financing allows you to draw immediate funds against your sales invoices. We have a panel of companies we work with, some advancing up to 85% of the value currently locked up in your debtors. Releasing the cash tied up in debtors not only facilitates growth, but also allows you to stay on top of your operating expenses and take advantages of settlement discounts and possible opportunistic purchases.
Invoice discounting can either be confidential or disclosed. With a confidential facility nobody knows you are financing against your debtors, you retain responsibility for invoicing, following up slow payers and managing your debtor’s ledger. By contrast with a disclosed facility your customers are aware that you are using an invoice discounting facility.
Traditional Bank Loans and Overdrafts
Bank loans and overdrafts have provided a valuable source of finance for all types of businesses in Australia for more than 50 years. In most instances, such financing is secured by a charge over the business’s assets.
At Greenwich Finance, we have strong relationships with the major lenders providing this traditional form of finance. Many of our brokers are ex-banker and consequently have fantastic channels into the decision makers in many of Australia’s top lenders. Just as importantly, our brokers have unique insights into how to present a deal to get the best outcome. This knowledge ensures deals presented by us get in front of the right people, in the right form, to ensure we get a “positive outcome in a speedy fashion”.
Business Transaction Facilities
Business transaction facilities are an innovative means of providing funding lines to clients. This enables them to connect and pay international or domestic suppliers and provide repayment terms for up to 120 days including a 60-day interest-free period.
The benefits of this facility include:
- The facility can be unsecured therefore there is no requirement to register on the PPSR or require bank releases.
- It provides you with a trading limit which you can use to pay suppliers whether they are international or domestic.
- The client and supplier transact with one another on a secure environment, loading their orders, invoices, bills of lading and acceptance of invoices through the portal functionality.
- The financier pays the suppliers directly once you as the client authorises them to do so.
- You receive 60 days interest-free. The facility allows you to repay at 60 days without incurring interest on your loan or you may extend up to 120 days with interest only charged from day 61.
- The financier can fund up to 10 different currencies.
- You earn Qantas Aquire points which you can use for your travel and entertainment expenses.