Debtor Finance

Invoice Factoring 

Invoice Factoring is a type of Debtor Finance where the lender purchases the unpaid invoice and takes responsibility for collecting outstanding funds in consultation with your business. 

Invoice Discounting 

Invoice Discounting is a secured loan provided by the lender against your unpaid or outstanding invoices. As invoices are paid, this credit amount is automatically repaid.

Debtor Finance allows you to turn your outstanding invoices into working capital to cover expenses like wages and bills, manage unexpected seasonal demand, or pay suppliers, tax requirements, or business dividends, some other benefits include: 

Unlock funds tied up in your unpaid invoices

Release cash from your outstanding customer invoices to grow your business, pay operating expenses or fund growth. 

Invoices act as security for loans

Your invoices become the primary security for repayment of your invoice financing facility. So, no collateral such as property is required as opposed to a bank loan or overdraft.

Boost cash flow and working capital

Rather than waiting for your customers to pay, you can access funds upfront to conduct day-to-day operations and bridge cash flow gaps.

A revolving credit facility limit that can grow with your business

A form of finance that gives your business ongoing flexibility to access funds when you need them. The more sales you make, the more credit you can access.

Lenders will require solid invoices and an accurate, up-to-date view of the accounts receivable ledger to prove the creditworthiness of your business. This will include a review of revenues, profits, cash flow, existing debt levels, and how long you’ve been established. 

On top of this, they will generally look for:

• A valid ACN
• More than 12 months in business
• Invoices with other strong Australian businesses
• Invoices are issued only after goods or services have been delivered
• Down to a minimum of three customers
• Ability to integrate with your accounting software such as Xero or MYOB

It’s important to get your documentation right for any business loan application. At Cabbage Capital we ensure all your key information is in order to secure the funding you require. In addition to usual business loan supporting documents, the documentation you will need to provide includes: 

• Accounts receivable ledger from your management accounting software
• Your trading accounts for the last 12 months 
• Examples of your last 12 months invoices
• Demonstration that your invoicing systems are secure and robust

Our founder and principal broker, Brin Hayden, brings over 20 years of experience in the commercial sector, focusing on solutions for small to medium enterprises to provide a real impact.

“I take the time to understand your business and develop a solution that works in your best interests. Because we’re smaller and leaner, you won’t be paying for the overheads of an army of consultants, and we don’t apply a one size fits all approach. 

Unlike banks or single product providers, we source finance from our network of 30+ lenders competing for your business. I bring in-depth knowledge of the lenders, options, and facilities open to you. We’ll shop around to identify and source the ideal package and arrangement for your requirements. And then negotiate the best rates and terms on your behalf.  

Debtor Finance is a fast and easy way to unlock funds tied up in your unpaid invoices to boost your cash flow and working capital. We can take away the stress of chasing invoices and replace it with the reassurance of a revolving credit facility that can grow with your business.”