Debtor Finance

Having consistent cash flow is vital for any business to survive.

One tool used by many businesses to help with cash flow is debtor finance. This facility works for businesses that sell goods to other businesses and raise an invoice once the goods have been delivered. Generally, payment for these goods is not made for 30 days, but in some cases it can be even longer. Under a debtor finance arrangement, an invoice will be sent to the lender, and once verified, payment will be made to the business’s account.

Although there is a cost when using debtor finance, many businesses are willing to absorb that cost into their margin to make sure their cash flow is consistent.