Why engage in financing or factoring debtors rather than obtaining a line of credit with a traditional bank?

Bank factoring often requires standardised financial covenants and provides less available funds. By factoring, there are few, if any , requirements for financial covenants and the facility can provide up to 100% of accounts receivable.

What is the interest rate payable?

The interest rate is within the current benchmark variable rate at the time of loan settlement. The actual interest rate will vary depending on a number of circumstances including the period of the loan, quality of credit history, the type of security and the purpose of the loan. The interest is generally of an interest only feature and can be structured so as to become due and payable at the inception or at the end of the term period.

What security is required?

The level and type of security is linked to the size of the loan. As a general rule, the smaller size loans may use vehicles, debtors, works of art and blue chip shares as security. For larger size loans, real estate property and/or business assets will be required.

How quick can loans be approved?

If all pre-requisite summary information is received, that is, details that can determine the capacity to repay and the security offered deemed acceptable, an indicative offer can be issued within days of processing of the loan application.