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Invoice/Debtor Finance – how could it help your business?

Stuck with cash flow in your business? Need a better way to invest in new equipment or stock? MPM Finance is showing business owners how competitive invoice/debtor financing can be used to improve cash flow and grow a business. Invoice/Debtor Financing is a facility which enables a business to realise the cash benefit of their sales without having to wait for debtors to pay – providing more sustainable and consistent cash flow.

What’s it all about?

As well as removing the need to use property as security, the self-liquidating financing facility enables business owners to take advantage of supplier discounts, grow the business, purchase additional equipment, or pay out term debt by providing a cashflow solution that recognises the value of the assets of the business.

Invoice finance is a stand alone facility that allows clients to lend up to 80% against their debtor book, and it can sit alongside other business borrowings, such as long term loans or leasing arrangements. Business clients find the advantage in not having to wait 30 to 60 days for funds from debtors, particularly those in the fields of labour hire, recruitment, manufacturing, wholesale, business services, transport and printing.

It also allows clients to release landed property as security and use their own home for their personal wealth creation, for example the purchase of an investment property, or to purchase shares. It can also be very useful with non-related Directors in a business, in such circumstances where they have an unequal security position for business debts.

The MP+ Difference

Our finance team’s ability to secure extremely competitive rates also means that using invoice finance is often cheaper for business owners than offering a discount to debtors to encourage prompt payments. McKinley Plowman’s finance division has access to a range of financiers so as to provide for a flexible invoice financing solution.

Our team utilises a competitive tendering process – whereby banks are asked to bid for the client’s business – to ensure the client receives the most suitable finding arrangement for their needs.

To find our more about how the McKinley Plowman finance team can help your business with invoice financing, contact us via our website at www.mckinleyplowman.com.au/contact-us/ or on (08) 9301 2200.

written by:

Paul Moran

Paul has over 35 years of experience in finding financial solutions for homebuyers, investors and business owners.
A licensed broker and member of the Mortgage & Finance Association of Australia (MFAA), Paul’s extensive experience includes 20 years with a major bank, seven of which were as commercial banking manager.
Paul delivers a holistic financial solutions to achieve the best possible outcome for a client’s personal or commercial lending needs. Paul also provides a comprehensive financial consultancy to business owners on commercial, equipment and invoice finance.