Debtor Finance

Every enterprise may encounter a shortage of working capital at some point. These cash flow deficiencies can occur independently of the business's long-term profitability.

Debtor finance provides a means to secure business funding by leveraging your accounts receivable as collateral. A thriving business with a robust order book does not necessarily translate to immediate cash availability.

Debtor finance, often referred to as invoice finance, allows you to release the capital that is tied up in unpaid sales invoices. Let us examine how this funding solution operates, the various forms of debtor finance available, and the benefits it can offer to your business.

How does debtor finance operate? Upon issuing an invoice, you can utilise debtor finance to gain immediate access to up to 95% of the invoice amount. Once your client settles the outstanding invoice, you will receive the remaining balance, minus any applicable fees.

Debtor finance is a versatile funding option that does not require any real estate as collateral and does not impose long-term debt on your business. With an established funding facility, you have the flexibility to finance as many or as few invoices as necessary to address cash flow shortfalls.