The following is for information purposes only and not to be used as financial advice as Professional Collection Services do not hold an Australian Credit License.
Professional Collection Services constantly receive enquiries from both debtors and clients regarding refinance options. More often than not, debtors stall in making payments to their creditors due to cash flow problems (not because the debt is in dispute). This then causes a snowball effect to their creditors, who may require finance themselves. To compliment our debt collection services, Professional Collection Service can introduce you to a network of professionals whom can advise and assist with a wide range of finance. Below is a sample of options, some you may have never heard of before.
- DEBTOR / TRADE / INVENTORY FINANCE
- LEASING / HIRE PURCHASE
- BUSINESS BANKING
- 1ST MORTGAGE / 2ND MORTGAGE
- EQUIPTMENT FINANCE.
WHAT IS DEBTOR FINANCE
Other names may include; Factoring or Invoice Discounting. Below are some common scenarios where debtor finance is applicable.
- Rapid sales growth when your working capital is low
- Management / Partner buy-outs
- Start-up business
- Replacing or reducing debt secured by the family home
- Labour intensive businesses where wages have to be met well ahead of income.
- Ownership changes and succession plans.
Industries that benefit:
- Mechanical / Smash Repair.
- Transport industry
- Commercial Cleaning
- Recruitment / Labour hire
How it works
Lets imagine you are a sports clothing importer who wholesales to other businesses in Australia.
You buy a Sydney Rooster jersey for $20 and sell it for $50, BUT you have to wait 45 to 60 days for payment so you can buy another jersey.
No Problem, debtor finance can give you up to $40 against the invoice within 24 hours (with the balance on full payment by the debtor), meaning that you can immediately go and buy two jerseys for you $40 and sell them for $100...
Now you receive $80 against the second invoice and you can buy four jerseys and so on. Its like a line of credit based on what you are owed.