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