Money
Issue No. 6 - July/September 2002
CCH Offers Invoice Credit Option
Companies can have invoices up to $20 million paid more quickly under the formal launch today of an innovative Australian trade finance business.
Banks and major wine, manufacturing and export groups are already using the process, according to Credit Corporation Holdings (CCH) which has introduced the service with support from European, UK and Middle Eastern merchant banking and investment interests.
“We buy single invoices for a pre-determined fee and once they are verified, CCH pays the vendor within three business days,” CCH’s Managing Director, Mr Denis Stollery says.
“Payment of invoice amounts is made by the debtor to CCH which has assumed ownership of those invoices,” Mr Stollery said.
“The solution has taken nine years to develop based on the real-time cash flow experiences of Australian companies.
“Banks, finance companies and accountants are viewing this option as one way they can provide clients with short-term funding while they themselves complete their more time-consuming due diligence work on a client's total funding request.”
Mr Stollery said the new invoice payment plan was not to be confused with the ‘factoring’ payments system.
“CCH does not provide a factoring service, which takes full control of a company's ledger, requiring a client to lodge all of its invoices with a finance entity for management on a month-by-month basis,” he said.
“The new payment option launched by CCH is strictly for single invoices or contracts only, and is designed to assist Australia’s middle-tier corporates improve the strength and management of their cash flow positions and balance sheets.
“CCH does not, and will not trade in full ledgers and we are not a lender of last resort.”
$200 million turnover target
Mr Stollery said cash flow relief would generally be provided on individual invoices ranging in va...
