Debt Factoring with ScotPac.
Turn unpaid invoices into opportunities
YOUR FAMILY HOME ISN’T REQUIRED AS SECURITY
FACILITY GROWS IN LINE WITH YOUR BUSINESS
We handle your accounts receivable & collections
What is Debt Factoring?
A type of Invoice Finance providing a line of credit secured against your outstanding accounts receivable. You can receive up to 95% of your invoice value as an advance payment. When your customer pays the invoice, the remaining balance less fees is released to your bank account.
This facility type is known as ‘full service’, meaning we handle your accounts receivable and collections, leaving you free to focus on getting new clients, processing orders, and growing your business.
No property security
your invoices, so you can leave your home out of the picture.
Grows with your business
business revenue, so there is no need for
Giving you more time
Why ScotPac?We believe in relationships, not transactions, and make it our business to know yours. With over 30 years' experience, you can count on us to see the true value of your business.
Who does Enquire Now
Small to medium-sized businesses experiencing rapid growth, or even those navigating their way through a turnaround situation can benefit from debt factoring. Limited companies, sole traders, partnerships, and startups are all eligible for this type of facility.
Many businesses don’t have a dedicated collections department to chase outstanding invoices. Debt factoring enables you to focus on the dollar productive tasks of your business with a large percentage of your sales value available immediately after raising an invoice.
Full-Service facilities are ideal for business owners who would love more time to focus on growing their business. Let our experienced and friendly team take care of your accounts receivable and collections, while you focus on core operations.
Your customers will be aware of your partnership with ScotPac with a debt factoring facility. If you would like to explore other options, talk to us today about confidential alternatives.
Some key industries we support:
For more information about how we can help your business, fill out an enquiry form or call us today.
HOW DOES IT WORK?
Debt factoring is a flexible and fast way to raise working capital.
You invoice your customer directly, and upload the invoice to us at the same time.
Within 24 hours, we will pay up to 95% of the approved invoice value, less our fees.
The remaining balance becomes available to you when the invoice payment is received in full.
HOW IS DEBT FACTORING DIFFERENT FROM A BANK LOAN?
While traditional business loan and overdraft providers require real estate or a high-value asset as collateral to borrow money, debt factoring allows you to get paid faster for the goods and services you have already sold.
You can get an immediate cash advance on your unpaid invoices, with the debt factoring company charging a small percentage as a fee for the facility.
Unlike a traditional business loan, you can be approved for a debt factoring facility and access a cash advance in as little as 24 hours. There are no fixed monthly repayment terms, and you can choose how many invoices you want to submit for financing. Many clients use debt factoring as a quick way to improve cash flow, and some companies prefer a more long-term arrangement.
IS FACTORING CONSIDERED DEBT?
Debt factoring is an external source of funding that helps companies to improve cash flow. Factoring does not involve either the business or the debt factoring company acquiring or issuing debt. A business can raise capital to improve cash flow by selling its outstanding receivables to a debt factoring company. Debt factoring is considered as a financial transaction and not as a loan.
In contrast to a traditional business loan, the cash advance received by the business is not subject to any restrictions on how it can be used.
CAN I CHOOSE WHICH INVOICES ARE SUBMITTED FOR FINANCING?
Yes. We offer a range of debt factoring solutions to help ease cash flow pressures. This type of facility is called selective invoice finance. It gives you the flexibility to choose which invoices you want to submit for financing and the length of the facility. You have the option of submitting more invoices to boost working capital when you are experiencing a cash flow shortage.
WHEN WILL I RECEIVE FUNDING?
Once the finance facility is in place, you will receive access to cash advances for your invoices in as little as 24 hours.
HOW MUCH DOES DEBT FACTORING COST?
The exact costs for a debt factoring facility depends on your business, your customers, and the services you require. We’ve helped Australian SMEs access the funding they need for over 30 years, and our rates are among the most affordable around. Give us a call to receive a personalised quote for your business.
WILL MY CUSTOMERS BE NOTIFIED?
Yes, your customers will be aware of your partnership with ScotPac. We’ll handle your accounts receivable and collections administration as a third party, so you can focus on core operations and growing your business with sufficient cash flow to support long-term profitability.
If you would like a confidential arrangement, call the number below and ask one of our friendly financial advisors about invoice discounting.
WHAT HAPPENS IF MY CUSTOMER DOESN’T PAY AN INVOICE?
We work hard to ensure that doesn’t happen and conduct credit checks to help you avoid overextending with a customer that may struggle to pay. If you are worried about how an invoice non-payment could impact your cash flow, you can include Bad Debt Protection as part of your credit facility to protect your working capital.
WHAT DO I NEED TO APPLY FOR DEBT FACTORING?
Talk to one of our friendly Invoice Finance specialists the best solution for your business and what you need to apply.
Not sure if Debt Factoring is right Learn more
for you? We offer other finance solutions
Call us to discuss how we can
finance your business 1300 505 883