Debtor finance also known as factoring, invoice debtor finance and cash flow finance is a transaction in which your business sells its invoices (accounts receivable) to a third party financial company for a percentage of the invoice value. The finance company is called a “Factor.”

Factors can provide services such as regular collections reports and maintaining the history of payments from you customers and they can even make collection calls for overdue invoices, though this is not necessarily the best way to handle outstanding invoices as you the company, know your customers and their situation better than the Factor.

This finance is not a loan – your company does not incur debt.


  • Your invoices are an asset and can represent large sums of money. They can be made to work for your business in a timely and regular manner.
  • Outsourcing is a good business strategy when an activity is not a core business function and this could apply to your accounts receivable.
  • You can stop offering incentives to customers to pay their invoices on time.


  • What type of business can use finance to increase cash flow?
    Essentially fast growing but more specifically businesses such as wholesalers, manufacturers, employment agencies, transport companies, building industry etc.
  • What if we are a start-up?
    This finance is ideal for a start-up. By now you have done your homework and have your prospective clients lined up and we help with that question “how do I pay my bills while I am waiting for my clients to pay?”
  • Will it affect my banking relationship?
    Using a Factor will not harm your relationship with your bank, generally it enhances the relationship due to your improved cash flow. Each business is different but in many cases, you will find there is no further need for an overdraft as you will be receiving your money immediately.
  • Will it change the way I do business?
    Your business becomes a “cash” business, giving you funds to take advantage of available discounts and cash to inject back into the growth and diversification of your business.
  • How have other businesses benefited from using CashFlow’s services?
    Please feel free to look at our success stories and be sure to watch Jim’s story on the Home page.


  • How do I qualify?
    If you issue invoices regularly for goods or services provided to other businesses and your turnover is between $20,000 per month and $500,000 per month (in receivables) you can qualify.
  • Do I need security?
    You don’t need bricks and mortar security, our security is your quality receivables, as they grow, so too does your facility.
  • How do I apply?
    Simply call us or fill in the easy contact form, and together we can discover your requirements and work out how best CashFlow can help you.


  • How does it work? Once your application is approved, there are 3 simple steps
    1. You issue your business invoices as usual and give us copies.
    2. Within 48 hours of issuing your invoice CashFlow will deposit up to 80% of the invoice value (less a pre-agreed fee) into your nominated bank account.
    3. After payment in full of the invoice, the balance is deposited into your bank account.
  • Who sets the limit on how much finance will be available?
    You set your limit, however it will be governed by your receivables. The more invoices you want factored the larger your limit. Your business can now grow at its own pace, not restricted by your bank’s lending guidelines.
  • Are all invoices acceptable?
    All verifiable invoices are acceptable.
  • Are all invoices factored?
    No. You can decide which invoices you sell and will be determined by your needs.
  • What does it cost?
    The cost will vary between 2.5% to 3.25% for a monthly invoice, special rates for shorter term payments can be negotiated depending on your turnover.
  • Who sends the invoices?
    It is your choice, either you can continue to send out your invoices and forward a copy to us or they can be posted on your behalf. CashFlow can even provide you with a complete accounts receivable management service with on-line status reports to have better control of your valuable customers. This is free of charge.
  • What about my customers?
    Establishing a credit line is a positive reflection of your business strength. Not all businesses qualify for a line of credit. Selling receivables for cash is a method of funding working capital used by large corporations world-wide. Only recently has this facility become available to small to medium sized businesses. You may find your customers already deal with factoring companies and you are unaware of it.
  • Where do customers send payment?
    Your customers will direct payments to CashFlow as shown on the invoice, they are also advised by letter when the facility is established.
  • What if invoices are not paid?
    If an invoice is not paid within a mutually arranged period we suggest you repurchase the invoice to avoid unnecessary costs – normally CashFlow manage that process for you to ensure your flow of working capital is not interrupted. Please note though, this is NOT a debt collection agency.