What is Debtor Finance?

Debtor finance allows businesses to raise money against their outstanding invoices to ensure a good, constant cash flow. By not having to wait for your customers to pay their 30, 45 or 60 day accounts, your cash flow will benefit and allow your business to grow. You are able to receive up to 80% of the value of your invoice within 24 hours of the application process. The balance of the invoice less fees will be paid out as the invoice payments are collected by us from your customers.

How will it help my business?

It allows you to free up your cash flow and provides working capital to grow your business. It enables you to fulfil more orders or boost profitability by taking advantage of early payment discounts on purchases.

Should my customers be concerned?

No. As one of the fastest growing forms of commercial finance in Australia and around the world, most business people will be familiar with the benefits of utilizing debtor finance. Businesses in their growth phase commonly use this type of facility to free up their cash flow to invest in their success.

Is there a fixed contract period?

At Function Money, we have no minimum term. While most clients will use our service up to 7 times, you are free to use us as little or as often as you need.

Do I have to factor every invoice I receive?

There is no minimum number of invoices that you must factor. There is, however, a minimum value of $8500 per debtor.

How much does an account set up cost?

There is no cost to set up an account with us, apart from any credit reference charges incurred. Our fee structure is fixed and simple to understand with no hidden charges or penalties.

How does your fee structure work?

We charge you for the length of time it takes to get repaid, regardless of the age or terms of the invoice being factored. Our structure is:

  • 0-21 days 5.0% of invoice value
  • 22-42 days 7.5% of invoice value
  • 43+ days an additional 0.2% per day

Some invoices may need insurance which would attract a further fee of 1.0% of the invoice value.

Can I get partial funding of an invoice?

Yes, we can advance you up to 80% of an invoice's value.

Does my business need to meet a basic criteria to qualify? Eg. Business operating for X number of years?

The criteria you have to meet is not at all onerous. We look at each business and their situation on a case by case basis.

Does my business have to be profitable?

While profitability is desirable, it is not a mandatory requirement.

My business has a poor credit rating. Will you help me?

We will not say no immediately. We will look at your situation before a decision to assist is made.

Is debtor insurance required on every invoice you factor?

While insurance is preferable, the final decision will be made by the franchisee you are dealing with. Generally insurance is required for all invoices unless you are a Government agency.

How long will it take to set up my account and start advancing funds?

We pride ourselves on excellent customer service and efficiency. From the time contact is made we endeavor to meet with you on the same day. Generally funds will be available to a client within 24 hours of our first meeting. Subsequent transactions can usually be completed within a couple of hours.

Can I obtain finance for other items from you? Eg. Second mortgage, import finance etc?

No, we only provide finance on invoices.



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