Invoice Finance

Debtor finance or Invoice Finance turns unpaid invoices into quick, efficient cash flow for growth and other business purposes. What’s great about it is that property security is not usually required. Access to funding is scalable, growing as sales grow.

If your business sells to other businesses on credit terms, Debtor Finance could be the solution to your cash flow requirements.

Why stress about paying your suppliers and wages on time when you can convert your outstanding invoices into immediate cash flow? At Hubbe, we understand how much pressure you are under to keep your business moving along. Debtor Finance is an easy and simple method of getting your bills paid – quickly and predictably. That’s one less thing to worry about so you can concentrate on the big picture: Growing your business.

Cash is just like oxygen for any business, yet many operate on a credit basis. With the increase in sales there is high increase in the business expenses. However the cash still remain with the debtors. Debtor financing assists when there is a cash flow shortage that hampers in running smooth business operations.

Debtor finance is the right option for you if your answer supports the below questions:

• Do you need cash for the management and growth of your business?
• Does your business functions using account receivables?
• Do you need constant flow of cash to pay timely to your suppliers?
• Do you need a quick finance approval and are not willing to use your personal assets as a security?

Debtor finance is a great option for small businesses which require constant growth but are baffling with cash flows in their business, in fact it is ideal for all businesses.

What is Debtor/Invoice finance?

Invoice Finance is a short-term cash flow arrangement. It provides access to funds based on the strength of your debtor ledger.

• You are capable of making early payments as a result of improved cash flow, which can subsequently result in supplier discounts
• Flexible line of credit that increases as your sales grow
• 24-hour online access enabling you to view and apply for funds.
• Use the power of your accounts receivables to receive cash flow
• Flexible and convenient cash access as needed (e.g. for seasonal variations)
• The product is customised to your business requirements and overall situation

• You sell your unclaimed invoices to the finance company
• Subsequently, the finance company makes up to 80% of the value of eligible invoice ready within one business day
• You acquire the funds as you want
• Your loan reduces as debtors continue to pay into your account
• Submitting new invoices to the company helps you acquire more funding

Invoice and debtor finance may be appropriate if you:

• Experience day-to-day and seasonal cash flow fluctuations
• Offer terms of payment to your business customers
• Provide trade payment terms ranging from 30 to 60 days
• Turnover in surplus of $1M of your goods and services

Step 1: : You supply your goods or offer services and you lift invoices to your customers. Dispatch a copy of your invoices alongside supporting paperwork to the preferred financier.

Step 2: Withdraw the available funds based on the agreed invoice percentage.

Step 3: The lender pays you the balance minus any fees when your clients pay their invoices.

• As a line of credit that can be withdrawn when you require it.
• To arrange satisfactory supplier rates, for example, you might acquire a more desirable price suppose you attempt to pay your invoices earlier or buy in greater volume.
• To pay large bills such as supplier and wage payments.

Debtor finance is best suited to businesses in the following industries:

• Manufacturing
• Wholesale trade
• Recruitment and labour hire
• Transport and storage
• Business Services
• Mining Services

Invoice Finance is suitable for the following business structures;

• Pty Ltd companies
• Partnerships
• Family Trusts
• Sole Traders

As the taxation and accounting treatments of various finance products may vary, we recommend you seek independent expert advice before choosing an option.