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Update: The Australian and New Zealand operations of Bibby Financial Services were acquired by Scottish Pacific Business Finance in late 2015 to create Australia’s largest non-bank invoice finance specialist. Welcome to our website.

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Once a debtor finance sceptic; now a convert.

Once a debtor finance sceptic; now a convert.

When I moved to Australia from the UK in 2008 I brought along a less than stellar opinion of debtor finance. I guess I had considered the whole debtor finance, invoice finance, factoring scenario expensive and a last resort for clients

It was in Brisbane that I met a Scottish Pacific business development manager in networking circles and listened as he explained the flexibility of debtor finance, its reputation and the competitive pricing in the Australian market. I was also told how it could free up security, allowing for more personal and/or business financing options for clients.

Over time I read more and more debtor finance case studies and pricing comparisons. I began to see the value in this alternative method of funding. When a fast growth client supplying the Queensland construction industry needed a flexible funding solution, I thought it prudent to introduce the company to Scottish Pacific.

Coming out of a downturn in the building market, the building products client was re-embarking on a growth period and needed working capital to fund growth. Scottish Pacific appeared to have ample ability to facilitate the client’s needs. The facility with Scottish Pacific was the perfect fit; the straight forward process left both the client and I pleased – a perfect outcome.

Commercially, it was the right option and provided good value. In my experience, Scottish Pacific cares about SME clients and understands their needs. Three years later and that same client is still using debtor finance to grow their business.
In this instance, I’m happy to admit that my preconceptions about debtor finance have been well and truly proved wrong by my clients, and indeed my own, experiences with Scottish Pacific.

My relationship with Scottish Pacific forms part of a suite of financing options that allows me to offer my clients more options. I'd say to accountants that, in reality, debtor finance is not a last resort for troubled businesses, it's a good strategic option for any advisory firm to have in their group of products.

In fact, the latest Good, Bad Ugly Report on the accounting profession showed that compliance fees are shrinking for accounting firms – I believe that developing innovative finance solutions for clients is an area all accounting firms should be looking at to broaden their service offering to remain relevant to their clients.

Peter Morgan has had senior roles at a number of Queensland accounting firms and is now Business Manager at accounting and finance firm Innovatus Group. Innovatus is a Brisbane and Gold Coast based accounting and financial planning firm engaging clients with innovative solutions to manage their businesses and finances. They are currently ranked 5th in Brisbane and 1st on the Gold Coast lists of Partner Firms with Xero.

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