How does debtor finance work?
Wouldn’t it be nice if customers had reasonable payment terms and always paid on time? Unfortunately, that’s rarely the case which is why debtor finance has been used by businesses for thousands of years and is becoming a much more common in Australia.
Having reliable access to cash flow is essential for any growing small business. Whether it’s for paying suppliers, your employees, investing in equipment or stock or simply having the confidence to take on that big new order, having cash available when you need can ease a lot of the stress of being a small business owner.
How debtor finance helps cash flow
Debtor finance lets you unlock cash from your unpaid invoices. Rather than waiting for your invoices to be paid, you can smooth business cash flow by bringing forward some of the funds you are owed. These funds can be then used for business operations or to invest in growing your business.
How does debtor finance with Skippr work?
By connecting the Skippr platform to Xero, your accounts receivable ledger is updated in the platform as invoices are raised and paid. Your available funds are up to 80% of eligible invoices which are customer invoices that are in Australian dollars, 90 days or less past the issue date and with customers of good credit quality.
The Skippr platform lets you draw funds with a click of a button and you will receive funds in your account the same day. The platform also has a simple and easy-to-use receivables management tools to help you get your invoices paid sooner so you aren’t paying more interest than you need to be.
Your customer invoices will be paid into a new collections account set up by Skippr and payments will be used to pay off your loan and any excess will go to the operating account of your business. Bank feeds from this collections account will be connected to your Xero and Skippr will post transactions relating to drawdowns and repayments back to your Xero so you can reconcile bank transactions with one click.
Find out more about how Debtor Finance with Skippr can solve your cash flow problems and book a meeting with us today.