Cash flow ensures that your business can meet its day-to-day and week-to-week expenses. FFB tailored cash flow finance will ensure that your business has a strong short-term position. You will be able to meet all expenses in the short term, while still retaining much needed flexibility to meet any unexpected opportunities or expenses.


What is cash flow & why does my company need it…

Cash flow is the amount of actual cash going in and out of your business over a certain period of time. Used to pay daily operating expenses such as: payroll, supplier invoices, bills and loans, cash flow, as we have all experienced, can certainly fluctuate from month to month, or even day to day.

Therefore, it is extremely important that your business has access to ready cash to cover such expenses should something unexpected arise, or receipts not meet expectation for whatever reason. What can our cash flow programs do for your business…Our carefully tailored program can help you seize new opportunities that may arise, acquire new contracts, take advantage of supplier discounts, you name it. Perhaps most importantly, it offers you peace of mind, as you know you will be able to handle the unexpected and continue to prosper in your business.




An overdraft is a temporary facility added to a business bank accounts where you are able to be overdrawn in your bank account by a pre determined amount. You are charged interest based on the amount overdrawn and the length of time overdrawn, and are charged a regular fee for the use of the facility.

An overdraft is particularly useful when you have regular sales and purchases coming out of your account which could leave you in bad cashflow situations. They are a good backup to ensure you can pay your bills even when you have not yet received your invoice payments.

An overdraft is not supposed to be a permanent source of finance, and if your business is relying on using it, you should have a review with FFB and look at a more cost effective methods on increasing your working capital.


Flexible – An overdraft is there when you need it and allows you to make essential payments whilst chasing up your own payments, and helps to maintain cashflow. You only need to borrow what you need at the time.

Quick – Overdrafts can be put in place in 14-28 days if your bank already hold security can be up to 60 days if they do not.


Cost – Overdrafts carry interest and fees; often at much higher rates than other secured loans. This makes them very expensive for long term borrowing. You also face large charges if you go over the agreed overdraft limit.

Recall – Unless specified in the terms and conditions, the bank can recall the entire overdraft at any time. This may happen if you fail to make other payments, or if you have broken terms and conditions; though sometimes the banks simply change their policies.

Security – Overdrafts may need to be secured against your personal assets, which put them at risk if you cannot meet repayments.



A business credit card is a credit facility that allows you to pay for goods and services with an interest-free period (usually 30–60 days). The credit is revolving, which means that you can use up to your agreed limit as and when you choose — even if you’ve made payments.

A business credit card can be a great way to separate your business expenses from your personal expenses. It’s also can help for your cash flow. Interest-free periods let you hold on to your own cash for longer without having to pay extra, allowing you to take up opportunities as they come along.

Having a credit card for your business can make it easy for you to manage your expenses and track your accounting expenditures. However, business credit cards, like personal credit cards, must be used wisely. While business credit cards do have advantages, there are many disadvantages as well. Let’s look at the advantages and disadvantages of business credit cards.


Easy qualification – It is much easier to qualify for a business credit card than a line of credit or a bank loan. If you have reasonable personal credit, or your small business is well-established, most credit card companies will be happy to extend a business credit card for your use.

Access to Easy Financing – When you operate a small business, you oftentimes need access to cash. Small business owners will regularly encounter cash flow problems when there is not enough cash available for a needed purchase. A business credit card can come in very handy when you need supplies, equipment, or even capital improvements.

Rewards – Many credit card companies offer rewards and incentives for using their business credit cards. You could earn cash back, airline miles, or other rewards just for making purchases on your business credit card.


Personal Credit Issues – All business credit cards require a personal guarantee, and good previous credit history in order to qualify. However, this can create issues for your personal credit down the road when credit companies report your business activity on your personal credit, or you become liable for late or over-extended credit.

High Priced Financing – Business credit cards are a very expensive way to finance purchases. You end up paying high interest rates and late fees, and in most cases, you also pay high annual fees just to have the card.

A business credit card can be advantageous, but you need to realize the potential consequences and make wise choices in obtaining and using a credit card for your business. By eliminating or controlling business credit card issues, you can eliminate the potential disadvantages and maximize the benefits for your company.



Debtor Finance, also known as Cash flow Finance, Invoice Factoring and Invoice Discounting, allows businesses to access funds owed to them in outstanding invoices before the debtor actually pays.

Debtor Finance provides a business with quick access to up to 90 per cent of the funds owing in outstanding invoices, with the remaining percentage paid when the customer pays the invoice.


As a business delivers goods and services to its customers, the invoices (trade debts) raised are forwarded to the financier. The financier then verifies the invoices and advances up to 90 per cent of the unpaid invoice value within 24 hours. The business can then access the available funds as required.

The remaining percentage of the invoice is paid to the business once the customer invoice is paid in full, less a small fee.

The business can retain control of the accounting and collections functions, or they can opt for the financier to control this function as part of a full service solution. Most Debtor Finance financiers offer online access to reporting, allowing the business to track payment receipts.


There are two main types of Debtor or Cash flow Finance:

Disclosed: the debtor or customer is notified on invoices that funds should be paid directly to the financier. This is generally known as Invoice Factoring.

Confidential: the debtor or customer is unaware of the funding being provided. This is usually called Invoice Discounting.

Invoice Factoring
Invoice Factoring is a disclosed finance facility (the business’s customers are aware of the finance facility) designed to improve a company’s cash flow by turning invoices into working capital. It provides quick access to up to 90 per cent of the value of verified invoices. The remaining balance (the retention), less charges, is made available to the business once payment is received from their customer. This facility is a recourse facility.

Invoice Factoring is commonly provided as a full service solution, with debt collection, sales ledger administration and reporting provided to businesses who do not have their own credit management resources. The financier’s professional debt collection services are able to assist in collecting debt promptly and efficiently. However, with a factoring agreement in place it is still possible for a business to continue managing their own debt collection if desired.

Invoice Discounting
Invoice Discounting is a confidential finance facility (the business’s customers are unaware of the finance facility) designed to improve a company’s cashflow by providing funding against the company’s outstanding receivables. It provides quick access to up to 90 per cent of the value of the approved invoices. The remaining balance (the retention), less charges, is made available to the business once payment is received from their customer. This facility is a recourse facility.

Invoice Discounting is commonly used by established businesses that have an in-house collections or credit management department these businesses manage their own collections and do not need the financier to collect invoices for them.

Businesses taking advantage of Invoice Discounting may not need all invoices funded, and may only use it as a type of overdraft facility for significant stock purchases or wages. Invoice Discounting allows a business to set limits on the amounts drawn down to control interest costs.

Generally, as long as the account is well-managed, only the business and the financier are aware of the Invoice Discounting facility.


Debtor finance solutions have been gaining popularity in Australia as a way to finance growing companies that need cash flow.

Debtor finance helps companies that have cash flow
The first and most important advantage of using debtor finance is that it can help a company that has cash flow problems due to slow-paying invoices. The improvements are often significant and can be noticed soon after financing the first batch of invoices. These improvements give company managers greater control over their cash flow, enabling them to better manage payments and new investments.

Extend terms with confidence
Extending credit terms to clients can be a problem for companies that don’t have sufficient cash at hand and can’t afford to wait. Debtor finance allows you to extend net-30 day payment terms to clients without having to worry about slow payments. Your company can finance the invoices and get funds immediately. When used correctly, this programme allows you to pursue new sales opportunities and grow the business.

Pay important expenses
One of the most important advantages of using a debtor finance programme is that your company will have enough liquidity to meet critical expenses such as wages, taxes and supplier payments. This liquidity is critical for maintaining smooth operations and fostering growth.

Debtor finance is easier to get than other solutions.

Qualifying for this programme is easier than qualifying for other solutions such as bank Finance and secured overdrafts.

  • Does not require real estate security
  • The financing line is secured by the assets of the business. Most lines do not need real estate security from the business owners
  • It can be used in turnaround situations and for start ups

The line does not follow conventional lending underwriting criteria and can be offered to companies that have cash flow problems and are in turnaround situations. In these cases, the client must have a viable turnaround plan and management plan in place. Also start ups can establish a facility and fun their first invoice.

It can be deployed quickly
Most debtor finance solutions, such as factoring and invoice discounting, can be deployed fairly quickly. This rapid deployment can help companies that have an immediate need due to cash flow problems or new opportunities. Depending on the complexity of the opportunity, deployment can be done in around 14 business days.


Debtor finance solves only one specific problem.

The most significant limitation of debtor finance is that it solves only one specific cash flow problem. It improves your cash flow if you cannot afford to offer net-30 terms to clients or if clients are paying slowly.

Debtor finance is available only to certain types of businesses
Debtor finance solutions, such as factoring and invoice discounting, can help only those companies that sell products and services to other companies.

It can be more expensive than alternatives
In general, debtor finance interest rates can be higher than the rates of other secured financing solutions, such as overdrafts.

The financier usually takes over the whole ledger
The debtor company usually takes over the management of your whole debtor ledger. This management can be a problem if the client wishes to retain control of customers who are especially important or sensitive to the business.

Businesses need to have a certain turnover volume
Most debtor finance facilities are offered to companies that have a minimum monthly turnover of $100,000. Recently new funders have emerged that will work with smaller amount or even a single invoice.

Some situations may required audited financial statements
In some cases, the financier may request that you provide them with audited financial statements. This scenario increases your cost for the service.


Finance for Business have a detailed understanding of the availablity and types of Debtor & Invoice Finance. Our professional approach can help you to determine the best solution for your business.