Commercial Finance

Trade & Debtor Finance Stop Waiting to Get Paid

If your business is profitable but cashflow-constrained because clients take 30, 60 or 90 days to pay, debtor finance lets you access the cash tied up in your invoices without waiting for payment.

Get a Quote Call Us

Common applications

✓Releasing cash from outstanding invoices
✓Funding wages while waiting for client payment
✓Supporting rapid business growth
✓Managing long payment terms from large clients
✓Trade finance for import and export businesses
✓Confidential or disclosed facilities available

Start Your Quote

The Problem It Solves

When Payment Terms Create Cashflow Problems

Many profitable businesses struggle with cashflow not because they lack revenue, but because of the gap between delivering work and receiving payment. A business invoicing on 60-day terms is effectively extending an interest-free loan to every client, every month.

When you are also managing wages, supplier payments, and the cost of taking on new work, that gap can create real pressure. Debtor finance converts your outstanding invoices into accessible cash, typically within 24 to 48 hours of raising the invoice, rather than waiting for the debtor to pay.

It is not a loan in the traditional sense. The facility grows with your business because it is linked to your debtor ledger. The more you invoice, the more you can access. Releasing cash from unpaid invoices is also one route businesses use to bring an ATO position current, which our guide to ATO tax debt finance covers in more detail.

Facility Types

Types of Debtor and Trade Finance

📋

Invoice Factoring

The lender advances a percentage of your invoice value and manages debtor collections on your behalf. Your clients are aware of the arrangement. Suits businesses that want to outsource debtor management.

💵

Invoice Discounting

You retain control of your debtor ledger and collections. The facility is typically confidential, meaning your clients pay you as normal and are unaware of the arrangement. Suits more established businesses with strong internal credit management.

🔄

Selective Invoice Finance

Rather than financing your entire debtor ledger, you choose which invoices to finance. Useful for businesses that only need periodic cashflow support rather than an ongoing facility against all debtors.

🌎

Trade Finance

Supports businesses importing or exporting goods. Covers the gap between placing an order with a supplier and receiving payment from your buyer. Structures include letters of credit, supplier payment facilities and import finance.

Who It Suits

Businesses That Benefit from Debtor Finance

🚰

Transport and Logistics

One of the most common users of debtor finance. Trucks are running, fuel and wages are going out, but payment from clients is 30 to 60 days away. Debtor finance bridges that gap consistently.

👨‍🔧

Labour Hire and Staffing

Businesses placing staff with clients on weekly or fortnightly payroll cycles but invoicing on 30-day terms face a structural cashflow mismatch. Debtor finance is a natural fit for this model.

🏭

Manufacturing and Wholesale

Businesses that produce goods and invoice distributors or retailers on long payment terms. The cost of materials and production comes well before payment arrives. Debtor finance covers that cycle.

🔨

Construction and Subcontractors

Progress claims and subcontractor invoices are common in construction. Where payment from head contractors is slow, debtor finance against progress claims can keep the business liquid and the project moving.

How It Works

The Debtor Finance Process

You Raise an Invoice

You deliver goods or services to your client and raise an invoice with your usual payment terms. The invoice is assigned to the debtor finance facility.

The Lender Advances Funds

The lender advances a percentage of the invoice value, typically 70 to 90 percent, usually within 24 to 48 hours. You have access to the cash without waiting for the client to pay.

Client Pays, Balance Released

When your client pays the invoice, the lender releases the remaining balance to you, less their fees. The facility revolves, meaning as you raise new invoices, new funds become available.

Assessment Factors

What Lenders Consider

Debtor Quality

The creditworthiness of your clients matters. Lenders are effectively lending against your clients' ability and intention to pay. Strong, established commercial debtors are viewed more favourably than a high volume of small or unknown clients.

Invoice Volume and Consistency

Lenders prefer businesses with a consistent level of invoicing rather than highly irregular or seasonal debtors. The size and predictability of your ledger influences facility terms and advance rates.

Business Financials

While debtor finance is primarily secured against the invoice ledger, lenders still assess the overall financial health of your business. Trading history, profitability and existing debt levels are part of the assessment.

Common Questions

Trade & Debtor Finance FAQs

What is debtor finance?

Debtor finance, also known as invoice finance or accounts receivable finance, allows a business to access a percentage of the value of its outstanding invoices before the debtor pays. Rather than waiting 30, 60 or 90 days for payment, the business receives funds shortly after the invoice is raised.

What is the difference between invoice factoring and invoice discounting?

With invoice factoring, the lender takes over the management and collection of your debtors. Your clients are aware a third party is involved. With invoice discounting, you retain control of your debtor ledger and collections, and the arrangement is often confidential. The right structure depends on your business and client relationships.

What types of businesses use debtor finance?

Debtor finance suits businesses that invoice other businesses on payment terms, typically 30 to 90 days. Common users include transport and logistics, labour hire, manufacturing, wholesale, construction subcontractors and professional services firms.

How much of my invoice value can I access?

Advance rates vary by lender and debtor quality but are typically in the range of 70 to 90 percent of the invoice face value. The balance, less fees, is released when the debtor pays the invoice in full.

Will my clients know I am using debtor finance?

This depends on the structure. Invoice factoring is generally disclosed to your clients. Invoice discounting can often be arranged on a confidential basis, meaning your clients pay you as normal and are not aware of the arrangement. We can identify which structures are available based on your debtor profile.

Local finance broker

Debtor Finance Near You

Ready to Unlock Your Invoice Cashflow?

If outstanding invoices are holding your business back, talk to us. We will assess your debtor ledger and identify the right facility to get cash moving faster.