Often it is not an equipment purchase that businesses require a financial solution for, but a viable and workable solution to issues with regard to their debtors. Jade Equipment Finance provides a highly effective Debtor Finance service to assist these businesses.
Jade Debtor Finance assists businesses to better manage their cash flow, by reducing or even eliminating the uncertainties around payment by their debtors.
The process of making this happen is based on the individual circumstances of each business and varies across a range of lenders active in this specialist area of finance.
Your Jade consultant will discuss your specific requirements and provide a detailed offer on how we can assist, but as a guide, the general process is as follows:-
- Your business completes work for the debtor
- You raise an invoice for the work, send it to the debtor with a copy to the lender
- The lender pays you the pre-arranged percentage of the invoiced amount virtually immediately. This may be as much as 95% but for this example, let’s say it is 80%
- The debtor (your customer) pays the full amount as invoiced into a bank account which is set up in your business name by the lender
- On receipt of payment by the debtor into this account, the lender then pays you the final outstanding amount due, in this example the 20%, less their fees and any interest on the outstanding debt.
- Lender fees are usually calculated as a small percentage of the total invoiced amount.
This process gives you immediate access to funds rather than having to wait for your customers to pay, on their terms. Which in some cases maybe months. You have the cash flow immediately to pay your expenses and invest in your business, without the need for another form of back-up financial support. In many cases, the costs are much less than other options such as bank finance and does not require the security conditions attached to some finance products. Property security is not always required as the lender has security from the debtors’ invoices.
Apart from solving a very real and immediate cash flow issue, Debtor Finance also empowers businesses to better manage their debtor by clearly identifying problem areas which require attention.
Your Jade consultant can tailor a facility to suit your business and assist you in handling the paperwork, systems and processes to implement a debtor facility.
Speak with a Jade Equipment Finance Consultant to discuss a Debtor Finance facility for your business. Call 1300 000 003