Unlock the cash flow in accounts receivable

Get funded up to 90%

Borrow from $5k - $150M

Works as a business line of credit

No other security required


What is Debtor Financing?

Debtor Financing is a facility that allows businesses to receive financing capital related to a portion of accounts receivable. It is another method to boost the working capital/cash flow of a business.

Under debtor finance, lenders provide a limit against the accounts receivables ledger of the business. Businesses can get financed up to 90% of their receivable ledger. They don’t require to provide any additional security.

Similar to a business line of credit, the interest is only charged on the amount drawn and not the entire limit. This allows businesses to stay on top of businesses’ expenses and make growth decisions.

What makes me eligible for Debtors Financing?

  • Business must have an active ABN or ACN
  • A business must have an accounts receivable ledger from other Australian business.
  • Debtor aging must not be more than 90 days.

Our loan guide

Debtor Finance

Loan amount

$5k- $150M

Interest rates from

9.99% p.a.

Loan term


Pre-approval time

24 – 72 hours

Unconditional approval & settlement time

7-10 days


Gets settled against payment of debtors within 60-90 days


Secured against current assets of the business No real estate security required

What you need to know

Can be used for

Buying stock/Inventory

Paying creditors

Other working capital needs

Documents required

Last 6-12 months bank statement.

Financial statements

Aged receivables ledger

ATO statements

A valid identification proof


Get paid against debtors’ ledger in advance

Can go higher funding without real estate security

Does not impact business leverage

*The information provided in critical information sheet is intended as a guide only. Please contact us for more information.

What you should know about Debtors Financing

Have questions? Speak to our experts!

What are the pros and cons of Debtors Financing?


Helps to cover the gap of slow payments.

Debtor finance limits are secured against the receivable ledger, so no additional security is required.

Generally, you can get higher limits without any additional security which is not possible with an unsecured business loan.

With a debtor finance limit, you only need to pay interest for what you have utilised (like a business line of credit/invoice finance).

You save interest if the debtor pays off early.

A debtor finance limit gives the flexibility to use the funds whenever needed.

Debtor finance is an off the balance sheet funding option, so it does not impact the health of the financial statements.


Generally, a debtor finance facility takes a longer time to get approved.

You may have to submit a receivables ledger on a regular basis with invoices as a proof.

A small line fee may be charged on the debtor finance limit for making the funds available to use for your business.

What documents are required to apply for a Debtor Finance limit?

Generally, a detailed assessment is done before approving Debtor finance limit and would require the following documents.

  • Last 6-12 months bank statement.
  • Financial statements
  • Receivables/Payables ledger
  • ATO statements
  • A valid identification proof

What are the differences between Debtor Finance and Invoice Finance?

Debtor Finance

  • Limits are determined basis the receivables ledger.
  • Need to submit receivables ledger periodically.
  • Do not need to submit proof of delivery.
  • Generally, debtors aging <90 days are only funded.

Invoice Finance

  • Limits are determined based on monthly invoice activity.
  • Need to submit an invoice every time to get financed against it
  • Need to submit proof of delivery along with the invoice
  • Generally, invoices with progressive payments are not considered by the lenders.

When can you use Debtors Financing for?

The best feature of Debtors Financing is that it enables you to unlock the cash in advance to keep up with your working capital needs. On top of this, there are many scenarios you could find having Debtor Finance useful such as:

  • To pay suppliers
  • To keep working with clients that insist on longer payment terms
  • Buying stock/Inventory
  • Paying tax dues
  • Advertising and Marketing
  • Meeting other working capital needs

How do I apply for Debtors Financing?


Upload your receivables ledger with invoices as a proof


Once the invoice is verified against the ledger and approved, the lender pays you up to 90% of the ledger


As your debtor pays the invoices, the balance of invoice will be paid to you net of charges.


Repeat the same process as you have new debtors on the ledger.

What are the differences between Debtor Finance and Invoice Finance?

Although Debtor Financing may look very similar to Invoice Financing on a fundamental level, there are differences you should know before choosing one. The major difference is the component that determines the limits of the funds.

Debtor Finance

Limits are determined basis the receivables ledger.

Need to submit receivables ledger periodically.

Do not need to submit proof of delivery.

Generally, debtors aging <90 days are only funded.

Invoice Finance

Limits are determined based on monthly invoice activity.

Need to submit an invoice every time to get financed against it

Need to submit proof of delivery along with the invoice

Generally, invoices with progressive payments are not considered by the lenders.

Real results with real people.

Niteesha Nagowah

Niteesha Nagowah

We had an incredible experience working with Saroj from Broc Finance. He is incredibly knowledgeable, responsive, and guided us through the purchase of our company vehicle with expertise. The attention to detail and commitment to finding the best possible options truly set him apart. Highly recommend his services for anyone navigating the complexities of obtaining a finance. Thank you again for outstanding assistance.
Manpreet Kaur

Manpreet Kaur

Our sincere thanks to Saroj ji & his team for their invaluable assistance in securing the loan. We are extremely greatful for his exceptional service & support throughout the process. Highly recommend!
vishal srivastava

vishal srivastava

We have used Broc Finance over last 2 years for various business line of credits and vehicle loan. Broc finance have been very professional in this journey. They have understood our needs as business and catered the solutions as per requirement . They look around in market and get one the best financial solution for the business be at vehicle of line of credits . I would strongly recommend the business for there services


Broc Finance were awesome…really responsive and solutions focussed. We especially appreciated having a broker who was an advocate for our interests when engaging with lenders.
Ibrahim Alpay

Ibrahim Alpay

Saroj and his team is amazing have been using him for business funding for over a year he has found surprising solutions when others couldn’t make it happen very skill full with negotiating high loan amounts that I would never expect at wonderful terms and rates look no further I recommend broc finance for your business lending purposes look no further and don’t think twice much appreciated won’t go to any other broker at all many thanks to his team !!!!!!
Nasir sabiry

Nasir sabiry

Thank you very much in helping me with financing a car SAS. You have been very professional and responsive every time I needed information. Fully recommend to any looking to finance a car.
Ajay Kanumuri

Ajay Kanumuri

I would strongly recommend. Saroj Shah helped to get my loan with in span of three days. He was very supportive and clearly explained the loan process.
Scott Filby

Scott Filby

Excellent experience with the service of Saroj! He did all the hard work and helped me find what I required. Saroj offered excellent suggestions and went the extra mile with his advice, which won my respect and helped in achieving the outcome required.

Have questions? Talk to a specialist!


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Frequently asked questions

Applying for Debtors Financing is similar to applying for other business loans. You need to enter some basic details regarding your business and submit documents as required. However, you need to carefully pick the lender who can meet your business financing requirements, are ready to use your account receivables ledger as a security and can offer competitive pricing. We at Broc Finance can help you with that, you can simply apply through our website or send us a message to contact you or simply give us a call on 1300 253 041 to talk to one of our lending specialists.

A Debtor Finance works similarly to a business line of credit. Here, the lender approves a debtor finance limit for your business based on your monthly activities within your accounts receivables. To withdraw funds, you need to provide/upload an accounts receivables ledger on the lender’s portal. You would be able to withdraw up to 90% of the amount of the receivables. Once the debtor pays their owing payment, your outstanding debt will be settled against the money received, and the balance would be transferred back to you after deducting the interest cost/charges for that period.

Debtor Financing is not a feasible product for every business. It depends on how you collect payments from your customer. For instance, if you have a retail coffee shop, you may not be eligible, as you would hardly raise an invoice on your customers as all your revenue would be driven through cash or POS. To be eligible for debtor finance, your business should have regular account receivables activities. Debtor finance is ideal for businesses where the credit period is generally higher.

A Debtor finance limit may have one or a combination of the following costs:

Interest cost: Interest charged on the funds drawn against the receivables for the period it remains outstanding.

Line fees: There could be a small monthly/annual fee charged by the lenders for facilitating you debtor finance limit throughout the term of the loan irrespective of your utilisation.

Receivable ledger Processing Fees: Instead of a line fee, some lenders may charge a one-off ledgers processing fee on each debtor’s finance throughout the term of the limit. Some lenders may give you an interest-free period of 60-90 days for a slightly higher processing fee.

Please feel free to reach out to us on 1300 253 041 or send us a message in case you wish to know more.

The debtor funding limit is determined based on the monthly receivables’ activity of your business. Generally, lenders are open to provide a limit of up to 3 – 4 months of the receivables raised by your business.

Generally, you are not required to provide any additional property security. The funding is advanced against the receivables raised and the lenders would have to charge over the account receivables.

Generally, a debtor finance limit is a less risky and more flexible product as compared to a normal unsecured business loan product and lenders can approve a higher limit which is not possible with an unsecured business loan or a normal business line of credit limit.

Generally, lenders can advance you up to 90% of the account receivables value depending on the risks associated with your business.

A Debtor Finance limit may not always be the right option for your business as you may have a business wherein you do not have account receivables activities, or your business requires a smaller loan amount, and a simpler option would be more suitable. There are various alternative business loan options that we can help you with. Some of the popular options are secured business loans, unsecured business loans, business line of credit and vehicle and equipment finance facilities. Please reach out to us on 1300 253 041 or send us a message. One of our lending specialists would get in touch in no time to assist you.

At Broc Finance, we endeavour to get the most adequate facility suitable to the business requirements of our clients. In most of the cases logged in through us, we try to get an indicative offer from the lender for our client’s consideration before proceeding with formal application and consent to credit check. This approach helps our clients to avoid unwanted rejections and credit checks which can significantly impact their credit scores.

We would be happy to answer if you have any other questions. Please contact us.