Debtor Finance with ScotPac.

Turn unpaid sales invoices into cash

Access up to 95% of your total invoice value

No property security required

Facility grows in line with your business

Enquire Now

What is Debtor Finance?

Debtor Finance, also known as Invoice Finance, is quite simply a line of credit linked to and secured by your outstanding accounts receivable.

If your business supplies products or services to other businesses on standard trade credit terms, Debtor Finance can help.

There are a number of variations in how the service is delivered, ranging from Confidential Invoice Discounting (for larger, more sophisticated businesses with a dedicated finance department) to the option of full management of accounts receivables (which allows many of our smaller clients to focus on growing their businesses rather than chasing outstanding invoices).

Partner in growth

As your business grows
the facility grows with it.

No property required

Unlike a traditional bank overdraft,
there is generally no need for real estate security.

Flexible financing options

It is a standalone facility that can
sit alongside other business borrowings
(such as overdrafts, term loans, and asset finance).
The positive impact was immediate. Without them we would have to use over half our sales revenue just to pay the monthly excise duty, which would make it impossible to manage cash flow effectively.
Philip Ridyard – Director, Strait Brands
The positive impact was immediate. Without them we would have to use over half our sales revenue just to pay the monthly excise duty, which would make it impossible to manage cash flow effectively.
Philip Ridyard – Director, Strait Brands

Why ScotPac?

We find a way to say “yes”. We're nimble and inventive with our funding solutions by unlocking the hidden value in your assets.
Fast Funding We can get you up and running in as little as 24 hours.
Tailored to Fit Solutions tailored for your business, we adapt to ever-changing funding needs.
Experts in SME We have over 30 years of experience lending exclusively to SMEs and make it our business to know yours.
Tailored to Fit Solutions tailored for your business, we adapt to ever-changing funding needs.
Experts in SME We have over 30 years of experience lending exclusively to SMEs and make it our business to know yours.
Fast Funding We can get you up and running in as little as 24 hours.

Who can Debtor
Finance help and
how does it work?

Enquire Now

Debtor Finance with ScotPac provides working capital for a wide variety of businesses. If you issue invoices for delivered goods or completed services to other businesses then we can help.

Some key industries we support:

Recruitment &
Staffing
Wholesale
Trade
Manufacturing
Transport &
Storage

 

Once you’re set up with us, you simply invoice your client directly and upload the invoice to us at the same time. Within 24 hours we’ll pay out up to 95% of the value of approved invoices, less our fees. The remaining 5% becomes available to you when the invoice is paid in full.


WHAT IS INVOICE DISCOUNTING?

Invoice discounting is a type of debtor finance that allows you to access a flexible line of credit based on the value of your unpaid invoices.

If your business suffers from cash flow gaps due to extended payment terms, you can use invoice finance to access up to 95% of the invoice value immediately.

The amount of credit your business can access changes as you raise new invoices are discounted invoices are paid. With invoice discounting, you will be responsible for collections and account management.

This type of debtor finance is more suitable for established companies that have an accounting and collections team.

WHAT INVOICES CAN BE USED?

  • Invoices raised to other businesses on standard trade credit terms can be considered for funding. Invoices to private individuals are not suitable.
  • Invoices older than 90 days cannot be funded.
  • Invoices must relate to goods delivered and/or services fully completed.
  • Progress Claims can also be funded, for more information see our Progress Claims Finance page.

DO WE NEED TO SEND IN ALL INVOICES?

It’s your choice. You can provide all of your accounts receivable or just a few selected invoices. If your business is experiencing temporary cash flow issues, you can use debtor financing to raise capital within 24 hours.

HOW DOES DEBTOR FINANCE COMPARE TO A TRADITIONAL BANK LOAN OR OVERDRAFT?

When a business applies for a loan or overdraft, the bank will evaluate the business to see if it meets strict lending criteria. Traditional lenders are risk-averse, and usually require property or a high-value asset to be used as collateral to secure the loan.

Debtor finance is a more flexible funding solution. You don’t need to use your home or personal assets as collateral to secure finance. By factoring your unpaid invoices, you can speed up sales cycles and increase working capital without placing yourself or your business into long-term debt.

Unlike a traditional loan, debtor finance allows you to improve cash flow by releasing money that is owed to your business for goods or services you have already provided to your clients.

WILL IT WORK FOR MY BUSINESS?

Whether your business is in manufacturing or wholesale, labour hire or transport, profitable or needing a boost, so long as you raise invoices to customers on credit terms, we are likely to be able to help. You can use the funding facility as a way to cover short-term cash flow gaps or as part of a long-term growth strategy for your business.

IS DEBTOR FINANCE SUITABLE FOR START-UPS?

Yes. A debtor finance facility can be an excellent option for a growing start-up or small business looking to better manage their cash flow and fuel sustainable long-term growth.

Due to strict lending criteria, traditional loans and overdrafts are usually out of reach for start-up companies. We are interested in where you are headed, not how many years you have been in business. Call the number below and speak to one of our financial advisors to see which finance product is the best option for your growing business.

HOW MUCH DOES DEBTOR FINANCE COST?

The cost of debtor finance depends on the type of facility you require. In general, you will be charged a factoring fee that is based on a percentage of the invoice value.

The cost of invoice factoring is usually higher than invoice discounting. This is due to the collections and account management services involved in invoice factoring.

HOW MUCH FUNDING CAN I ACCESS?

You can boost your cash flow by immediately accessing up to 95% of the value of your outstanding invoices. Once your customer has settled the invoice, you will receive the remaining balance less fees.

HOW LONG DOES IT TAKE TO RECEIVE FUNDING?

It usually takes less than 24 hours to be approved for debtor finance and receive funding. The sooner you apply, the faster we can process your application and transfer funds to your account.

You can use our free online tool to see how much funding you could access, or give us a call, and we’ll help you choose the right finance product and guide you through the application.

Not sure if Debtor Finance is right
for you? We offer other finance solutions

Learn more

Easy to apply

Call us today to discuss how Debtor Finance can help.

1

Give us a call

Talk to one of our friendly
Debtor Finance specialists
about tailoring a solution for
your business

2

Proposal

We’ll present you with the
solutions to choose from,
based on what you’ve told
us you need

3

Documentation & Settlement

We’ll work with you to
dot all the i’s and
cross the t’s to finalise
your solution

Get approval within 24 hours

Get started today

Call us to discuss how we can
finance your business 1300 332 867