What is a credebt® facility?
Credebt® facilities are unique types of business finance. They compete with, and replace or complement, bank facilities. The traditional bank overdraft can be replaced with a revolving credebt® facility. A term loan can be replaced with a repayment credebt® facility and company assets can be refinanced using credebt®.
Bank credit v. Convertibill® credebt®
Banks lend money to businesses (sometimes). They secure these loans with personal guarantees from the owners and liens on the business’ assets. The bank’s focus is on the business’ cash flow, its balance sheet and the financial history of the company.
Convertibill® trades with businesses (every day). It uses credebt® to purchase transactions and contracts for immediate cash. Its focus is on the knowledge and experience of the owners and the quality of their current and future business.
Why is Convertibill® credebt® better?
Credebt® is better because it’s available. Let’s face it, banks aren’t lending, not really.
The only credebt® facility Convertibill® doesn’t offer is any alternative to bank mortgage facilities.
How easy is it to get a credebt® facility?
Who uses credebt®?
Business people from all walks of life, both large and small, are using credebt® today. Where a company used to have a credit facility from a bank, they’re now using a credebt® facility from Convertibill®.
How does a credebt® facility work?
There are three types of credebt® facility:
- Revolving credebt® – competes with, or complements, an overdraft facility
- Repayment credebt® – competes with, and replaces, a term loan facility
- Refinance credebt® – finances/refinances assets and/or loans
A revolving credebt® facility is business finance that competes with, and replaces or complements, a bank overdraft facility. Rather than borrowing money on a recurring basis, the business sells its contracts, supplier invoices, customer invoices or other trade transactions on a revolving basis to Convertibill®. Convertibill® provides immediate cash to pay suppliers, purchase stock, finance orders and get immediate payment on customer invoices.
A repayment credebt® facility is business finance that competes with, and replaces, a bank term loan facility. Term loans are repaid in equal instalments on a monthly basis. The business borrows the money and provides personal guarantees and liens on its assets as security. A repayment credebt® facility is also repaid in equal instalments but Convertibill® does not require liens or personal guarantees. Instead, its security relies on trading the day-to-day transactions of the business.
A finance/refinance credebt® facility finances, or refinances, existing assets and/or loans. Any business that has tangible and valuable assets can refinance them using credebt®. They can also use credebt® to finance new assets like machinery or capital items and rent them from Convertibill®, much like a lease. Refinance credebt® can also be used to ‘repackage’ multiple loans and lease obligations into one single credebt® facility so that monthly repayments are reduced thereby improving cash flow.
Is a credebt® facility a form of invoice discounting?
Yes and no. No, because it can be used to pay suppliers, purchase stock and finance orders. When financing customer invoices, it works similar to other Invoice Discounting & Factoring [IDF] providers but with many significant differences. Traditional IDF is an all or nothing service where all the borrowers business must be processed through the lender. There are concentration limits, disallowables, lock-in contracts, personnel guarantees, liens, audits, etc. Convertibill® customer finance has none of these restraints and is both flexible and easy to use.
Applying for a credebt® facility
The process starts when an applicant either applies online or telephones 01 799-5499. A Convertibill® Specialist conducts a telephone meeting to understand the applicant’s its business finance needs. It will cover many aspects of the business, its customers, how its pricing works, how it operates and so on. After this, information is exchanged and a one-page offer is issued. If this is accepted by the customer, they are transferred to the Trade Desk and the application is processed so that trading can begin.
Making the difference to 1,000s of companies across Ireland