The main sources of debt finance are:

Financial Institutions: Banks, credit unions, and building societies offer loans, overdrafts, and lines of credit to businesses. 

Retailers: Businesses can purchase goods through store credit facilitated by finance companies. While store cards often come with high interest rates, some retailers provide interest-free periods. 

Finance Companies: These entities typically offer financial products through retailers and must be registered with the Australian Securities and Investments Commission (ASIC). 

Suppliers: Trade credit allows businesses to defer payment for goods received, providing flexibility in cash flow management. 

Factor Companies: Also referred to as debtor’s finance, factoring involves selling accounts receivable (invoices) to a third party (a factor) to access immediate cash instead of waiting 30 to 60 days for customer payments. Customers pay their invoices directly to the factor, and businesses should carefully evaluate the associated costs before entering into such agreements. 

Invoice Finance: Similar to factoring, but in this case, customers pay the business directly, remaining unaware of the financing arrangement with the lender. 

Peer-to-Peer Lenders: These platforms connect borrowers with individual lenders. Loan terms and interest rates may vary based on the perceived risk, and repayment is typically required within a specified timeframe. 

Family or Friends: Borrowing from personal connections should involve a formal written agreement outlining repayment terms, interest rates, and other conditions. Seeking legal advice to draft the agreement is highly recommended to prevent misunderstandings.