Invoice Finance / Debtor Financing
Customers can get cash for their outstanding debtor list or invoices as security.
Amounts can vary between 80% to 100% of the value of the debtor list or invoices.
Cash is deposited into the customer’s account the following day after the invoice was raised.
Invoice finance is an alternative to an overdraft facility.
Once the facility is approved, there is no need to re-apply for higher amounts.
No more waiting 30, 90 or even 120 days to be paid from your customers!
Benefits
Yes! That’s right, No deposit needed!
Term of a lease can be from 12 months to 60 months.
The interest is set at a fixed rate.
The ownership of the asset will be transferred when the final payment or the residual payment is made.
Payments can be made weekly, monthly.
There must be residual payment at the end of the term.
The asset if financed 100%.
The full payment can be claimed as a tax deduction.
The lender claims the GST on the purchase.
The customer can claim the GST in the weekly/monthly payments and the residual.
The ATO guidelines govern the residual amounts and terms of the Finance Lease.
Finance Leases are looked at as off-balance sheet lending.
100% of the payments can be claimed as a deduction.
The residual can be paid out by the customer at the end of the term, or it can be refinanced into another loan. Alternatively, the residual could be paid out at the dealer when upgrading to a newer model.
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