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Debtor Finance – MHF

DEBTOR FINANCE

Debtor finance or cash flow finance is a facility that enables a business owner or company to obtain up to 80% of their outstanding debtor amounts almost immediately, without having to wait for those debtors to pay as they normally would.

A debtor finance facility provides a great range of benefits to a company and can assist in growth, stock purchases, operating expenses or other commercial opportunities.

At Materials Handling Finance Pty Ltd (MHF), we provide fast and easy debtor finance. Here are the benefits you can get with debtor finance at MHF:

1. A growing business

Cash flow is often a stumbling block for a growing business. Increases in demand for stock can result in larger order quantities, which in turn comes at a higher up front cost. The need to accommodate more staff or warehouse space may arrive before the proceeds of sale are received, placing stress upon your existing cash flow. The possibility of taking on more contracts may depend on a businesses ability to immediately fund additional equipment needs. Each of these scenarios can cause significant growing pains to an expanding business.

One of the real benefits of debtor finance is in providing the equity to fund growth, without the need of real estate to secure the finance.

The concept behind cash flow finance is quite simple. Receive 80% of the invoice amounts owed by your existing debtors almost immediately and only pay interest until the amounts are received from the debtor. Using a debtor finance facility can give you greater flexibility to grow, make confident commercial decisions and take your company to the next level.

2. Insurance

Upon setup of the debtor finance facility, your debtors are profiled to ensure they continue to meet their obligations. To minimise the risk of a bad debtor when a business has already received the amount via debtor finance, a flexible insurance facility is available to give you additional peace of mind. Insurance policies can cover up to 90% of the debtor amount.

Find Out More

If you have a strong balance sheet and would like to find out more about debtor finance, please call us on 1300 884 145 or log on to www.mhf.com.au and lodge a quote request for us to get back to you.

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Commercial Pre-approval

Equipment finance applications are usually driven by the immediate need to obtain additional plant and equipment or machinery. While response times can be fast depending on the lenders workload, they are rarely immediate.

Traditionally, the pre-approval process has been associated with residential homebuyers. Pre-approvals can provide a level of comfort and confidence when purchases are searching for a new house, as a buyer will be clear about their financial position and how a lender will respond to a contract for purchase.

At Materials Handling Finance Pty Ltd (MHF), we provide fast and easy commercial pre-approvals. Here are the benefits you can get with commercial pre-approvals at MHF:

 

1. Bargaining Power

When negotiating with equipment suppliers, having a clear indication of your own financial position can aid in the bargaining process. Where a purchaser knows exactly what they have to spend and that the funds are readily available, the purchaser can negotiate terms that are more favourable to them including delivery dates, price and volume. Having a pre-approval in place puts you in the position of control.

 

2. Prospective Contracts

Often a business owner or company may be asked to quote or respond to a tender that falls outside of the current operating capabilities of the business.

Perhaps the business requires more machinery or equipment in order to fulfil the requirements of a prospective contract. Having a pre-approval in place provides the certainty and confidence that you as a business owner will be able to obtain the new equipment prior to submitting a quote or tender response.

 

3. Fast Turnarounds

An existing pre-approval expedites the turnaround of obtaining new equipment or machinery. Where businesses rely on the traditional process of obtaining finance; that is, recognizing the need, contacting a financier, preparing financials, applying and documentation and then waiting for a response, times can be considerable before the equipment is actually ordered and in place. This process needs to be undertaken for each equipment item required at different times.

With a pre-approval, a running approval balance is in place and business owners can then simply order and receive the equipment in an efficient manner. One of the great benefits is that the complete application process is completed just once for the pre-approval amount.

 

How does it work?

 In simple terms, the commercial pre-approval facility operates by:

  • An initial application for a pre-approval amount (ie. $500,000)
  • Equipment is ordered against the pre-approval
  • The pre-approval amount is reduced by the purchase amount
  • The pre-approval operates on a revolving limit; as the loan is paid, the pre-approval amount increases again

 

Find out more

If you would like to find out more about commercial pre-approvals, please call us on 1300 884 145 or logon to www.mhf.com.au and lodge a quote request for us to get back to you. Alternatively, you can email or call our team directly:

Ian: iogilvie@mhf.com.au | 0407 818 887

Mal: mmace@mhf.com.au | 0401 647 526