We spoke with Bernadine Geary, Director, Cashflow Finance at Fundamental Business Finance, who provided some insights to the...
Debtor Finance: Guarantee Upfront Payments With Waddle’s Alternative
Delayed payments can be crippling, here's how to fix itTeam Waddle
Topping the list for most stressful things of running a business has to be waiting for your invoices to be paid.
Especially when customers don’t pay on time.
Delayed payments can be crippling when you don’t get that injection of working capital back into the business immediately. Cash locked up in invoices can create a raft of troubles when trying to keep consistent cash flow in your operation. Enter the debtor finance alternative…
At Waddle, we see this problem all the time with businesses of all sizes. That’s why we designed our debtor finance alternative software to allow you to dip into money owed to you without having to jump through endless hoops.
SEE ALSO: Why Would You Take Invoice Finance Over A Bank Overdraft?
With the debtor financing alternative, you have the chance to get paid for your invoices whenever you need—no need to wait. You’re now in control of how much capital you bring into the business upfront. You’ll sleep better at night with reliable, predictable cash at your fingertips.
The Debtor finance alternative quick facts:
The maximum amount you can qualify for depends on the total amount and quality of your invoices, as the overall health of your business.
A typical funding scenario:
- Total value of customer invoices: $100,0000
Total credit line granted: $80,000
Frequency: Daily funding against fresh invoices
Interest rate: From 6.95% per annum (charged on account balance)
Transaction fee: 0.3 – 1.2% (charged on amount borrowed)
Repayments: Customer payment/s pay down your balance
Waddle‘s line if credit is unique to Australia and New Zealand, it’s similar to a bank overdraft, only not secured by your real estate or personal assets.
Who would qualify?
Any business with a business-to-business operation can qualify for the line of credit, as long as they currently have outstanding receivables to borrow against.
You’ll need to pass the following:
- Been in business for a full trading year
Have an annual turnover > $250,000
Use cloud accounting
Sell on credit terms
Have bookkeeping up to date at least weekly
Got any questions? Phone 1300 649 322 or email email@example.com and chat to a specialist.