Debtor Finance is a way to finance small and growing businesses that need working capital by financing its invoices. This financing product allows you to maximise your cash flow, which is a key factor in the success of any business. Unlike traditional lending products, this solution allows you to finance slow-paying invoices, which provides immediate funds to pay for company expenses.
The two most common forms of debtor financing are invoice factoring which is used by small companies and invoice discounting which is used by larger companies. Even though they both work differently and offer different features both solutions solve the same problem and provide similar benefits.
By borrowing against the outstanding value of your trade debtors you won’t miss out on business opportunities that you otherwise may have which can help you achieve your business goals and targets.
You might use this type of product if your business sells goods or services on credit terms and consequently has restricted liquidity, or if your business is expanding or if your business activity is affected by seasonal trends.
Contact us to discuss ways to increase your business cash flow needs.