If your business is sitting on a stack of unpaid invoices while waiting on customers to pay, you are not alone. Late payments are one of the biggest cashflow killers for Australian SMEs — but debtor finance offers a smart way to unlock that money without taking on traditional debt.
What Is Debtor Finance?
Debtor finance allows businesses to borrow against the value of outstanding invoices. Instead of waiting 30, 60 or 90 days for customers to pay, you can access up to 85% of the invoice value within 24-48 hours.
Types of Debtor Finance
Invoice Factoring
The lender takes over collection of your invoices. Best for businesses that want to outsource accounts receivable entirely.
Invoice Discounting
You retain control of your debtor ledger — the arrangement stays confidential from your customers. Ideal for businesses with strong credit control processes.
Selective Invoice Finance
Choose which invoices to finance with no lock-in to an entire ledger. Perfect for seasonal cashflow needs.
Who Is Debtor Finance For?
- B2B businesses invoicing other businesses
- Outstanding invoices of $10,000 or more
- Businesses with slow-paying customers or long payment terms
- Fast-growing businesses needing working capital
Benefits
- Immediate cashflow — access funds within 24-48 hours
- Scales with your business — grows as your invoices grow
- No property security required — invoices are the security
- Reduces bad debt risk — some facilities include credit insurance
What Does It Cost?
- Service fee: 0.5% to 2.5% of invoice value per month
- Discount rate: Applied to advanced funds
Ready to Unlock Your Invoice Value?
At Co-Pilot Finance and Insurance, we work with 40+ lenders to find the right debtor finance solution. Apply online today or call us to discuss your options.