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Debtor Finance Solutions – Unlock Cash Flow from Your Invoices
Turn Unpaid Invoices into Immediate Working Capital
Waiting 30, 60, or even 90 days for customers to pay can cripple your cash flow. Debtor Finance (also called Invoice Finance or Factoring) allows your business to access up to 80% of invoice value upfront, giving you the cash you need to pay staff, suppliers, and grow—without waiting for customers to settle their accounts.
What is Debtor Finance?
Debtor Finance provides an advance on your outstanding invoices:
Raise an invoice to your customer.
Up to 80% of the invoice value is paid into your account within 24 hours.
Once your customer pays, the remaining balance (less financier’s fee) is released to you.
It’s like turning your invoices into a cash-on-delivery system, without having to offer discounts for early payment.
How Does Debtor Finance Work?
Deliver your product or service to your customer.
Raise an invoice and submit a copy to your financier.
Receive up to 80% of the invoice value immediately.
Once the customer pays, the balance is credited to you (minus the financier’s fee).
Many businesses compare Debtor Finance to having an EFTPOS machine for invoices—you sell on credit but still get the cash flow right away.
Key Benefits of Debtor Finance
Fast Access to Funds
Get cash within 24 hours of invoicing
Secure
Typically secured against debtors plus company & director guarantees (no property required)
Growth-Ready
Take on larger contracts without worrying about delayed payments
No Discounts Required
Improve cash flow without cutting into margins
Flexible
Works alongside your existing banking facilities
Who Can Use Debtor Finance?
Debtor Finance is suitable for almost any B2B business offering credit terms, including:
Transport & Logistics
Manufacturing & Wholesale
Labour Hire & Staffing Agencies
Growing SMEs & Startups
Construction (including eligible subcontractors)
Businesses not meeting strict bank lending criteria
It’s especially useful if you are:
Experiencing rapid growth
Struggling to invest in new equipment due to delayed payments
Missing out on supplier discounts because of poor cash flow
Using high-interest loans for working capital
Real Client Success Story
A client was using a high-interest unsecured loan to fund operations. When the chance came to supply a national retail chain, their credit limits couldn’t support the growth. AWC Solution: We replaced the costly loan with a Debtor Finance Credit Line securedagainst their invoices. This allowed them to take on the new client, expand to two additional major contracts, and double their business within months.
Why Choose Aussie Working Capital?
Unlike many providers, we don’t just push you to any funder. We carefully match you with a lender who aligns with your industry, goals, and business culture, ensuring you get the best long-term outcome.
FAQs
Frequently Asked Questions
Debtor Finance, also known as Invoice Finance or Accounts Receivable Finance, allows Australian businesses to unlock up to 80% of their unpaid invoices upfront. Once the customer pays, the remaining balance is released to you (minus a small fee). It provides reliable cash flow without waiting for long credit terms.
Yes. Small businesses, startups, and SMEs in Australia can use Debtor Finance if they invoice other businesses on credit terms. It’s especially useful for companies experiencing growth, facing cash flow gaps, or unable to qualify for traditional bank loans.
Debtor Finance is widely used across industries such as:
● Transport & Logistics
● Wholesale & Distribution
● Manufacturing
● Labour Hire & Recruitment
● Construction (including subcontractors)
Any B2B business offering trade credit can benefit.
Once a facility is set up, businesses can typically access cash within 24 hours of submitting invoices. This makes Debtor Finance one of the fastest cash flow finance solutions in Australia.
No. Unlike traditional bank loans, Debtor Finance is usually secured against your outstanding invoices, along with director and company guarantees. Your home or property doesn’t need to be pledged as collateral.
Both terms are often used interchangeably. In Australia, Factoring usually refers to invoice finance where the lender may take over collections, while Debtor Finance allows you to continue managing customer relationships. At Aussie Working Capital, we tailor the facility to suit your needs.
Costs depend on the facility size, risk profile, and industry. Fees are typically a small percentage of the invoice value. Most businesses find the benefits—such as being able to take on bigger contracts and access supplier discounts—far outweigh the costs.
If your business is growing, struggles with late payments, or misses opportunities due to lack of working capital, then Debtor Finance could be the right solution. Speak with our team at Aussie Working Capital and we’ll assess your situation to match you with the most suitable
lender.
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