What is Debtor Finance?
In an ideal world, your business would receive cash on delivery for every transaction. Unfortunately, commerce rarely works so smoothly.
Payment terms of 30 to 90 days are common, and even if every invoice is paid on time, you can still experience cash flow difficulties when expenses need settling before payment is received.
And when you need to issue large invoices over long payment terms, the situation can be even worse. A lucrative contract can cause genuine problems if it locks up business funds for several months before payment is received.
This is where debtor finance comes in, helping you get paid sooner to relieve your cash flow worries with no fuss, no hassle, and no extra debt.
Debtor Finance Unlocks
Debtor finance is way of unlocking the value in your accounts receivable ledger. With this service, you can be paid most of each invoice’s value within 24 hours of us confirming the details, regardless of the invoice terms.
And the more money you’re owed, the more finance you can receive, removing cash flow issues from your business equation completely.
How Do You Qualify for
So long as you have an annual business turnover of at least $1m, and work with at least four regular paying business customers, you can apply for debtor finance with us. It’s quick and easy, and once your account is approved you could have the funds you need within a single business day.
How Much Does Debtor Finance Cost?
Compared to unsecured business loans or commercial overdrafts, debtor finance offers a highly efficient way of funding your business. Once we’ve verified your invoice, we will advance you up to 90% of its value within 24 hours.
Then, once your customer has paid the invoice, you make a settling payment to us along with a small fee. There are no ongoing interest repayments, no long-term commitments, and no risk to your existing business assets.
Do You Need Collateral?
You don’t need to offer any extra security to use debtor finance. Your issued invoices provide the only collateral we need, so there’s no risk to your business assets.
Keep Control of Relationships
Unlike some other invoice services where you sell your debts to a collection company, with debtor finance you keep complete control over your business relationships. The only contact we’ll have with your customers is when we verify the invoice details before sending you the funds.
If debtor finance sounds like the solution your business has been looking for, then contact our specialists today to see how we can make cash flow worries a thing of the past.