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Vol 12 – 24th June, 2004

 

Debtor Finance - Increase your working capital by turning invoices into cash immediately.

Debtor Finance 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.

The process is simple - When you have raised an invoice for goods you have delivered, or services you have provided, you will receive up to 80% of the value of that invoice usually within 24 hours. You are then refunded the remaining 20% when your client pays. In effect, it’s as if all your customers had paid in cash!

Debtor Finance is increasingly replacing less flexible options like the overdraft, as the facility does not require the director’s homes to be mortgaged like a bank. The assets of the business form the primary security for the facility.

Why consider Debtor Finance?
Debtor Finance is suited to businesses that require additional working capital for specific reasons, e.g.

  • Growth – the facility is generally limited only to the level of your accounts receivable. As your business grows, so does your Line of Credit. This gives you the flexibility and confidence to grow your business in the knowledge that you have an increasing working capital facility, without the need to continually approach your bank manager.
  • Start Ups – Debtor Finance is an ideal facility to assist those businesses in their infancy

Obtain Supplier Discounts – the additional cash generated will enable you to negotiate discounts with your suppliers.

  • Settlement Discounts – by gaining access to 80% of invoices immediately, you can avoid offering expensive settlement discounts to your customers.
  • Quick Creditor Turn - creditors need to be paid quicker than debts can be collected.

Industry Growth

Over the past three years, the number of businesses using Debtor Finance facilities in Australia has more than doubled. This is a trend, which began in the USA and Europe and is quickly gaining acceptance in Australia.

This represents a growth rate of over 30% for each of the past eight (8) years. Debtor Finance is one of the fastest growing financial products in Australia today.

To find out more about the benefits of Debtor Finance please contact Oxford direct on 1800 850 509. Alternatively visit www.oxfordfunding.com.au.

Kind Regards

 

Rob Lamers - 0422 306 372
National Sales & Marketing Manager
rob-lamers@oxfordfunding.com.au

 

  
   
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