Debtor Finance with ScotPac.

Invoice discounting is a type of debtor finance that allows you to access a flexible line of credit based on the value of your unpaid invoices.

If your business suffers from cash flow gaps due to extended payment terms, you can use invoice finance to access up to 95% of the invoice value immediately.

The amount of credit your business can access changes as you raise new invoices are discounted invoices are paid. With invoice discounting, you will be responsible for collections and account management.

This type of debtor finance is more suitable for established companies that have an accounting and collections team.

• Invoices raised to other businesses on standard trade credit terms can be considered for funding. Invoices to private individuals are not suitable.
• Invoices older than 90 days cannot be funded.
• Invoices must relate to goods delivered and/or services fully completed.
• Progress Claims can also be funded, for more information see our Progress Claims Finance page.

It’s your choice. You can provide all of your accounts receivable or just a few selected invoices. If your business is experiencing temporary cash flow issues, you can use debtor financing to raise capital within 24 hours.

When a business applies for a loan or overdraft, the bank will evaluate the business to see if it meets strict lending criteria. Traditional lenders are risk-averse, and usually require property or a high-value asset to be used as collateral to secure the loan.

Debtor finance is a more flexible funding solution. You don’t need to use your home or personal assets as collateral to secure finance. By factoring your unpaid invoices, you can speed up sales cycles and increase working capital without placing yourself or your business into long-term debt.

Unlike a traditional loan, debtor finance allows you to improve cash flow by releasing money that is owed to your business for goods or services you have already provided to your clients.

Whether your business is in manufacturing or wholesale, labour hire or transport, profitable or needing a boost, so long as you raise invoices to customers on credit terms, we are likely to be able to help. You can use the funding facility as a way to cover short-term cash flow gaps or as part of a long-term growth strategy for your business.

Yes. A debtor finance facility can be an excellent option for a growing start-up or small business looking to better manage their cash flow and fuel sustainable long-term growth.

Due to strict lending criteria, traditional loans and overdrafts are usually out of reach for start-up companies. We are interested in where you are headed, not how many years you have been in business. Call the number below and speak to one of our financial advisors to see which finance product is the best option for your growing business.

The cost of debtor finance depends on the type of facility you require. In general, you will be charged a factoring fee that is based on a percentage of the invoice value.

The cost of invoice factoring is usually higher than invoice discounting. This is due to the collections and account management services involved in invoice factoring.

You can boost your cash flow by immediately accessing up to 95% of the value of your outstanding invoices. Once your customer has settled the invoice, you will receive the remaining balance less fees.

It usually takes less than 24 hours to be approved for debtor finance and receive funding. The sooner you apply, the faster we can process your application and transfer funds to your account.

You can use our free online tool to see how much funding you could access, or give us a call, and we’ll help you choose the right finance product and guide you through the application.