Debtor finance is a form of finance used to improve a business’s operating cash flow using its accounts receivable ledger as collateral.
Generally, businesses have low working capital reserves that can cause cash flow or liquidity issues as a result of payment terms in place with their debtors. Debtor finance solutions fund against outstanding invoices to improves the cash flow of a business.
Capital Growth provides access to a large number of major and boutique lenders who provide debtor finance (also known as invoice discounting, factoring, invoice finance or working capital finance) to suite a business’s need.
The Benefits of Debtor Finance include:
- Immediate access to cash when you invoice
- More flexibility than a bank overdraft
- No property security required
- Facilities limits range from small amounts to large
- The facility acts as a revolving line of credit for your business
- Finance is fast, and a flexible source of funding designed to grow in line with your sales
- Improves cash flow management
- Can be utilised to fund expansion or growth of a business
- Provides more time for management to focus on managing and growing their business