benefits of using debtor financing solutions

Running a business is tough. Whether a business is stable, growing, or experiencing challenges, there will always be times when a business requires a cashflow solution or a cash injection to facilitate smooth business operation. As a finance & mortgage broker, it’s crucial you can quickly identify all opportunities to assist your clients as their scenarios arise.

the core benefits of using invoice finance

• Avoid large amounts of cash being tied up with debtors. This could be helpful for a newer business which was established by the owners’ own funds. Now that the business is trading well and is making healthy profit, it’s time to repay the owners’ money. Debtor or invoice financing can help in this situation. It would also be useful for a business taking on a new client requiring a large allocation of resources, a client taking on a new importing opportunity but has multiple purposes for the funds – not just stock purchases, or businesses who experience busy periods or seasonal boosts in sales such as Christmas or other holiday periods. Many wholesale, trade and manufacturing businesses experience these cashflow strained periods. Debtor or invoice financing solutions also allow the facility to grow as the business grows without needing to reapply to keep changing a set limit such as a traditional, business loan overdraft, or line-of-credit.
• Unlock the cash from raised invoices, fast! As with the above examples, the business currently has a major asset being its range of debtors. This can be unlocked to use to develop the business. e.g. repay personal funds used for business purposes, partner buy-out, raising cash to buy the competitors out, purchasing stock or new equipment, and much more. This is especially useful when the client can’t or doesn’t want to involve property as security for the finance.
• Keep control of sales ledger with confidential financing. The relevant factor here is, who controls the sales ledger? If it’s important to keep your internal business financing affairs confidential, debtor or invoice financing could be your key solution.

what other benefits are there?

Once you have established the business owner requires a cashflow financing solution, there is a range of added benefits to consider for debtor and invoice financing.

1. Improved cashflow removes business and financial stress
2. No monthly service fees
3. Free up time for the business owners, financing, and accounting personnel, rather than being bogged down with paperwork, applications and endless financial reporting and auditing
4. Allows the business owners to focus on their business whilst you take care of the financing solutions
5. Paperless online application
6. Quick and easy to apply, and receive funds
7. Connects directly and seamlessly to their accounting software
8. Win/win for the broker – allows you to grow your business with multiple income streams

funding solutions tailored to your business

We’ve taken the hassle out of providing business cashflow solutions to your clients. Easily and seamlessly grow your revenue streams whilst giving your clients another reason to stay with you.

Thornmoney has five accessible BDM’s to support brokers to learn about our products and answer any questions. Whilst Aris Lockhart, Jerome Boadu and Andy Cusworth supports the NSW, ACT, QLD, & NT regions, Chris McCall and Gail Worsley look after VIC, SA, TAS, and WA brokers.