WA banking group BankWest has signed a strategic agreement with Allianz Finance to refer all new customers seeking finance to Allianz under a new invoice discounting facility.

Existing clients will be transferred to Allianz in the next two months, and offered debtor finance under a similar pricing structure.

They could also be eligible for bad debt insurance. The insurer will absorb the legal fees associated with clients transferring from BankWest.

Cashflow finance is a relatively new business line for Allianz, and has been on offer for businesses as part of its business accelerator product line since November last year.

The product allows customers to access up to 90% of money owed by clients. The product also offers 100% protection if the customer is unable to pay.

Allianz Finance CEO Brad Bartlem told insuranceNEWS.com.au invoice discounting is a relatively immature market in Australia.

“It’s a new form of financing that businesses haven’t looked at to fund their day-to-day operations,” he said.

Mr Bartlem says many banks and financial institutions are sticking to their core business and leaving niche product lines to other companies.