Debtor finance is a smart way of getting your business the cash it needs to operate, invest and grow. All businesses have a series of regular outgoings and payment obligations, from wages and supplier bills to rent, energy costs and taxes. On top of that, they sometimes need to find money in order to invest, for example in new equipment.
No business can afford to be late on its payments, so when the bank account runs dry, many resort to borrowing the cash they need but business overdrafts and unsecured loans are expensive – especially given that your business is most likely already owed the money it needs, so why take on debt? Most businesses have tens if not hundreds of thousands of dollars tied up in unpaid invoices at any one time. Debtor Finance unlocks that money by receiving the cash from those invoices as soon as they are issued. So much money is tied up in invoices nowadays, that a trading business can often meet major finance requirements in this cost effective way.