Every investment decision needs to have a benefit associated with any costs. For debtor finance the facility enables new sales to be financed and thereby helping your expansion to be on the right track. The calculator takes your projected increase in gross profit versus the cost of the facility.

You can open up the calculator here.

How to use the calculator

Simply input the information into the dashboard to get an indication of how much benefit you could reasonably expect to see from the facility:

• Current Sales - these should include GST (admin fees are charged against gross invoices)
• Advance Rate - this is the % a debtor financier will make available to you against invoices
• Admin fee - debtor financiers charge a fee as a % of gross sales. Expect between 0.25% - 2.5%
• Cost of funds is the annual cost of funds that you borrow from the debtor financier. Expect annual costs to be of the level 9% - 12.5%
• Expected Usage of funds - most companies typically use 70% of what they have available - it depends upon the needs of your own business - play with this as you see appropriate.
• Debtor Days - the average length of time it takes your customers to pay you
• Projected Sales - rotate the dial to show your projected sales, based upon having the facility in place (these should also include GST - admin fees are charged against gross invoices). Reasonably speaking you should expect to see increased sales through having additional finance available
• Projected Gross Margin - rotate the dial to show your projected gross margin, based upon having the facility in place. Reasonably speaking margins should be expected to increase - through increased economies of scale of higher sales and supplier discounted through making earlier payment.

By adjusting the levels above you can see how the costs and benefits materialise. Look at the dial if it is green then you should expect there to be a benefit to your company.

Any queries, please do not hesitate to get in touch with us on 1300 79 30 60 or email us