MEDIA RELEASE
DEBTOR FINANCE INDUSTRY BOOMING

The debtor finance business in Australia is enjoying a big upturn. The reason is the way it offers small to medium sized enterprises the opportunity to accelerate their cash flow by providing a flexible line of credit linked to the level of the businesses accounts receivables.

Just like in the USA and Europe, debtor finance is increasingly replacing less flexible options like the overdraft. The number of businesses using debtor finance has increased significantly over the past 10 years in Australia with industry turnover increasing from $3b to $30b per annum.

‘And Oxford Funding is leading the charge in this growth,’ says Oxford Funding’s Rob Lamers. ‘We've based our business on continually releasing innovative products that have met with great success.'

Debtor finance has become considered because it is suited to businesses that require additional working capital for specific reasons. Examples include:

• Growth - The facility is generally limited only to the level of accounts receivable. As a business grows, so does the line of credit. This gives directors the flexibility and confidence to grow a business in the knowledge they have an increasing working capital facility.
• Start Ups - Debtor finance is an ideal facility to assist those businesses in their infancy.
• No Real Estate - Funding lines are secured by a debtors ledger, not property.
• Quick Creditor Turn - Creditors need to be paid quicker than debts can be collected.

Oxford Funding’s success in this growth market is because its products have distinct advantages which include:

• Selective - Customers choose which invoices to finance depending on cash flow needs. There is no need to finance all invoices which means saving money.
• Concentration policy - Unlike other financial institutions, Oxford Funding does not have a strict policy of restricting funding if a debtor is more than 30 percent of the ledger and will fund a single debtor.
• No Risk - Oxford Funding takes the risk of customers not paying and funds at 90 percent.

ENDS

Contact Oxford Funding on 1800 850 509 or www.oxfordfunding.com.au
More media information: Rob Lamers (03) 8414 7600

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