Debt Factoring with ScotPac.

Debt factoring is a flexible and fast way to raise working capital.

You invoice your customer directly, and upload the invoice to us at the same time.

Within 24 hours, we will pay up to 95% of the approved invoice value, less our fees.

The remaining balance becomes available to you when the invoice payment is received in full.

While traditional business loan and overdraft providers require real estate or a high-value asset as collateral to borrow money, debt factoring allows you to get paid faster for the goods and services you have already sold.

You can get an immediate cash advance on your unpaid invoices, with the debt factoring company charging a small percentage as a fee for the facility.

Unlike a traditional business loan, you can be approved for a debt factoring facility and access a cash advance in as little as 24 hours. There are no fixed monthly repayment terms, and you can choose how many invoices you want to submit for financing. Many clients use debt factoring as a quick way to improve cash flow, and some companies prefer a more long-term arrangement.

Debt factoring is an external source of funding that helps companies to improve cash flow. Factoring does not involve either the business or the debt factoring company acquiring or issuing debt. A business can raise capital to improve cash flow by selling its outstanding receivables to a debt factoring company. Debt factoring is considered as a financial transaction and not as a loan.

In contrast to a traditional business loan, the cash advance received by the business is not subject to any restrictions on how it can be used.

Yes. We offer a range of debt factoring solutions to help ease cash flow pressures. This type of facility is called selective invoice finance. It gives you the flexibility to choose which invoices you want to submit for financing and the length of the facility. You have the option of submitting more invoices to boost working capital when you are experiencing a cash flow shortage.

Once the finance facility is in place, you will receive access to cash advances for your invoices in as little as 24 hours.

The exact costs for a debt factoring facility depends on your business, your customers, and the services you require. We’ve helped Australian SMEs access the funding they need for over 30 years, and our rates are among the most affordable around. Give us a call to receive a personalised quote for your business.

Yes, your customers will be aware of your partnership with ScotPac. We’ll handle your accounts receivable and collections administration as a third party, so you can focus on core operations and growing your business with sufficient cash flow to support long-term profitability.

If you would like a confidential arrangement, call the number below and ask one of our friendly financial advisors about invoice discounting.

We work hard to ensure that doesn’t happen and conduct credit checks to help you avoid overextending with a customer that may struggle to pay. If you are worried about how an invoice non-payment could impact your cash flow, you can include Bad Debt Protection as part of your credit facility to protect your working capital.

Talk to one of our friendly Invoice Finance specialists the best solution for your business and what you need to apply.