ADVANTAGES OF DEBTOR FINANCE
- Invoice factoring gives you quick access to cash
- No need for collateral or bank loan
- No need to worry about collecting accounts receivable
- Loans based on customers credit rating not yours
Turn your accounts receivable into quick cash.
Invoice Factoring in Australia, which is sometimes also also known and Debtor Finance or Accounts Receivable Finance is a quick, easy way to get cash, with no credit check and no need for collateral. At MerchantCash.com.au our staff are ready to help you get the small business loan you need to grow your Australian small business.
Factoring involves us purchasing your accounts receivable, giving you an excellent way to put more money into your business right away. With accounts receivable financing, you can get an upfront payment of 80% of the value of your invoices with the remaining 20% (less a factor fee of 1 to 2%) paid to you when your customer pays their invoice.
How invoice factoring works
We purchase your outstanding invoices (or accounts receivable) and give you an immediate cash advance of approximately 80% of your total invoice balance.
The remaining 20%, (less a “factor fee” of 1 to 2%) will be held in reserve. The customer then pays you or we can collect the payment on your behalf and then you will receive the reserve amount. You can be confident applying with Merchant Cash, we are a market place matching over 70 lenders and can guarantee the best interest rates in Australia.
Who qualifies for invoice factoring?
Virtually any business can qualify for accounts receivable financing. The financing is dependent on the size and quality of your invoices and the credit worthiness of your customers.
You have a $200,000 invoice due in 30 days. We will immediately give you 80% of that amount ($160,000), holding the remaining $40,000 in reserve.
After the customer pays, we give you the remaining $34,000 [$40,000 less our 3% factoring fee of $6,000].
All rates depicted here are purely for illustration. The actual rates on your finance may be higher or lower depending on your circumstances