Benchmark Debtor Finance

debtor finance - the product

Debtor finance … factoring … invoice discounting … don’t be confused by the jargon, the facility is quite simple.

Imagine you are a furniture importer who wholesales to other businesses in Australia.

You buy a chair for $20 and sell it for $50, BUT you have to wait for 45 to 60 days before you can buy another chair.

No problem, Scottish Pacific Benchmark can give you up to $40 against the invoice within 24 hours (with the balance on full payment by the debtor), meaning that you can immediately go and buy two chairs for your $40 and sell them for $100...

Now we can give you $80 against the second invoice and you can buy four chairs and so on. The mathematics speaks for itself!

This is a very simple example, but debtor finance is just that - simple.

It's like a line of credit based on what you are owed.

who does it suit?

Debtor finance is ideal for growing businesses with TRADE receivables.

Typically Scottish Pacific Benchmark deals with businesses with annual sales turnover of $500,000 to $50,000,000.

Common scenarios include...

Rapid sales growth squeezing working capital
Management / Partner buy-outs
New business start-ups
Replacing or reducing debt secured by the family home
Labour intensive businesses where wages have to be met well ahead of payment receipts
Ownership changes and succession

the opportunities

Scottish Pacific Benchmark offers both confidential invoice discounting and disclosed factoring facilities.

With a confidential facility your clients are unaware of Scottish Pacific Benchmark’s involvement. You are responsible for the professional maintenance of your sales ledger although we will maintain a mirror of your ledger on our system.

With a disclosed facility we set up and administer a professional sales ledger, issue statements to your debtors and maintain an accurate record of sales and receipts.

With both types of facilities all the information you need to keep track of your position is available through your personal Internet portal.

Untitled Document