Frequently Asked Questions

Debtor Finance

What is Debtor Finance?

Why use Debtor Finance / Invoice Finance?

Is there a minimum amount I can borrow?

Will my Customer know that I am using Taurus Debtor Finance?

How will you pay for the goods that you need to purchase you need to fulfil the sales order your have just obtained from your customer?

Most banks do not provide a trade finance facility without property as collateral. I don't really want to put up the family home as security for my business facilities. Does Taurus offer unsecured business loans?

My business is seasonal and therefore I will not be using the trade finance facility through out the year. Will you charge me a line fee or a non usage fee?

My business pays suppliers by Letters of Credit. Can Taurus issue Letters of Credits to my suppliers?

Is my business charged interest whilst the Letter of Credit is open but unpaid?

My business purchases goods from a number of suppliers which are going to a number of customers? Is Taurus able to fund this type of transaction?

What is Debtor Finance?

If your business sells on credit terms to your customers, you can leverage against these customers to obtain working capital.

• Taurus will lend up to 80% of the debt, and provide funds to your business on the day the invoice to your customer is generated.
• When your customer pays the debt, the remaining 20% (less charges) is paid to you. So, instead of waiting 30/60/90 days for payment, you can access up to 80% of the value of debtor invoices/accounts receivable usually on the same day that the invoice has been issued.

Why use Debtor Finance / Invoice Finance?

• Ensures cash flow is maintained.
• Allows you to reuse the $ to generate profit.
• As your business grows, so does your funding.
• Orders can be filled while you're waiting for your debtors to pay.
• Your overdraft no longer handles the volume of work or growth you are experiencing.
• You want to avoid introducing new equity partners (thus losing control/sharing profits).
• You want to fund the business based on business assets, not personal property.
• You require funding for a merger or acquisition opportunity.
• You want to restore cash flow after a period of trading losses, business relocation or heavy expenditure (e.g. R&D).
• You want to restructure and clear taxation arrears, to pay creditors or negotiate new terms with creditors.
• Saves management time.
• Experienced credit staff will be liaising with your accounts staff.
• Credit checks to verify credit worthiness of those you are giving credit to.
• Offering debtor's payment discounts can be expensive and inefficient.

Is there a minimum amount I can borrow?

Generally Taurus Debtor Finance business clients should have credit sales turnover of between $500,000 per annum or a minimum facility size of $50,000.

Will my Customer know that I am using Taurus Debtor Finance?

Not usually. Taurus offers two styles of facility, Invoice Discounting and Partnership Debtor Finance.

Invoice Discounting is a totally confidential facility (undisclosed) where control and management of the Debtor's Ledger remains with the client.

Partnership Debtor Finance is disclosed to your Customer, but verbal and direct contact with your customers remains with you. Taurus will issue end of month customer statements on your behalf.

Several factors will influence whether your facility is disclosed or undisclosed:

• Strength of your business
• Contractual nature of your terms of trading
• Type of industry you are in
• The spread of your customer base

Do you think that Debtor Finance could be of assistance to your business? If so, contact Taurus now: send us an email or call toll free on 1300 135 108.

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Trade Finance

How will you pay for the goods that you need to purchase you need to fulfil the sales order your have just obtained from your customer?

Trade Finance can leverage against the customer sales order and stock to obtain the goods without you having to put up cash or real estate as security.

Most banks do not provide a trade finance facility without property as collateral. I don't really want to put up the family home as security for my business facilities. Does Taurus offer unsecured business loans?

Taurus's Trade Finance and Debtor Finance facilities are unsecured in that they do not rely on the family home to act as collateral. Taurus will look to the business assets to secure the facility.

My business is seasonal and therefore I will not be using the trade finance facility through out the year. Will you charge me a line fee or a non usage fee?

There are no line fees or non usage fees for trade finance. If you use the facility once a year, then you are only charged when you use the facility.

My business pays suppliers by Letters of Credit. Can Taurus issue Letters of Credits to my suppliers?

Taurus can issue Letters of Credit to any supplier, anywhere in the world.

Is my business charged interest whilst the Letter of Credit is open but unpaid?

No, Taurus does not charge interest for the period whilst the Letter of Credit is open but unpaid. You only pay interest when the Letter of Credit is drawn upon. If you can negotiate terms with the Letter of Credit and your Customer pays Taurus before the Letter of Credit is drawn, then you will not pay interest charges to Taurus at all.

My business purchases goods from a number of suppliers which are going to a number of customers? Is Taurus able to fund this type of transaction?

Taurus's varied clients often include the textiles or industry where this is a common occurrence. Taurus's system is designed to handle complex multiple transactions.

Would Trade Finance suit your business? Contact Taurus now: send us an email at sales@taurustf.com.au or call toll free on 1300 135 108.

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