The Collins Finance Group prides itself on
offering financing solutions for companies seeking an alternative to
traditional
business overdraft
facilities. The facility we promote is known as “debtor finance” (which
is more commonly referred to as “factoring”). The use of
debtor financing is becoming more widespread and much of the stigma associated
with its use has diminished in recent years. Debtor finance is a widely
used financing medium throughout Europe and the USA. It is very cost
effective and more often than not cheaper than traditional overdraft
facilities secured by real estate!
Debtor finance is restricted to the following industries:
- Wholesale
- Manufacturing or
- Service based
The broad details are:
- An uncapped debtor finance limit, determined
by your “current” trade
debtor levels (< 90 days)
- Advances of up to 90% of those debtors
- No real estate security required
- Debtor funding is generally available
within 24 hours of the business issuing relative debtor invoices
- Comparable interest rates and fees to those typically applying to bank
overdrafts
- The facility is not suitable for businesses that utilize progress
payments to collect debtor receipts
Benefits
- The facility will fund 100% of your GST liability with respect
to invoices
- The improved cashflow may facilitate supplier discounts and
- If you are offering “early settlement discounts” to
clients you may be able to discontinue them
If you’d like to discuss your current
situation, please contact us by telephone or email.
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