Discounted Debtor Purchase Facility – Is a flexible cash flow arrangement and debtor management service to free up cash and save you valuable time spent chasing invoices This product cannot be confused with those products described as Factoring. CFS has developed a product that purchases your 100% debtor ledger on a non recourse basis.

Discounted Debtor Purchase Facility versus Debtor Factoring Comparison

Category CFS Discounted Debtor Purchasing Facility Debtor Factoring
Merchant’s debtor Ledger Purchased 100% 80-90%
Payment Frequency Fortnightly/Monthly Fortnightly/Monthly
Resource back to Merchant id bad debt No Yes
Undisclosed (debtor unaware of 3rd Party) Yes Yes/No
Cr Control Managed by CFS or Vendor Yes Yes
GSA required over Merchant Yes Yes
PPSR required over invoice Yes Yes
Personal Guarantees required No Yes
 Cr Limits for Merchant Debtors Yes No

Key Benefits

  • Reduced Funding and Credit Control Costs
  • No Bad Debts
  • Certainty of positive cashflow
  • No recourse
  • Dealing with professional debtor managers