Debtor financing is a financing agreement that allows businesses to access cash by leveraging their outstanding invoices. Businesses must ensure a steady cash flow to cover expenses such as inventory, bills, wages, and other operational requirements. However, some customers may not always pay on time, which can hinder a business' ability to efficiently carry out its production. To thrive and expand, businesses can turn to convenient funding options like debtor finance.
With invoice and debtor finance, your business can easily access funding for up to 85% of the value of unpaid invoices sent to your customers. This provides a convenient way to manage your cash flow and ensure that you have the necessary funds to keep your business running smoothly. Instead of waiting for your customers to pay, you have the option to access up to 85% of the funds up front by selling your unpaid invoices to our lenders.
How does debtor finance work?
Financial providers and brokers offer debtor financing services. You have the opportunity to receive cash advances based on your issued invoices. You can easily secure funding without having to navigate through a lengthy and complex paperwork process. There are different solutions available in the world of debtor finance, such as cash flow finance, asset finance, invoice discounting, and invoice factoring.
Who can benefit from debtor finance?
Both small and medium-sized businesses, as well as established companies with a significant amount of working capital invested in accounts receivable, can find value in debtor finance. Various forms of financing typically necessitate collateral in the form of real estate or a lengthy track record in business, but debtor finance is highly accessible and has a straightforward qualification process.
If new projects or opportunities arise and you lack the necessary capital to fuel growth, debtor finance can provide a viable solution. Maybe your collections department needs a revamp, with a significant number of overdue accounts. To minimise stress, you can partner with an invoice factoring company to handle all the collection efforts.
If your business loan is not enough or if your business loan applications consistently face rejection, consider exploring debtor financing, as it boasts a higher approval rate. Effortlessly unlock the working capital trapped in your outstanding invoices. Maximise the benefits of debtor finance to support or enhance your business.
Get started today!
Get funding with Overdrive Commercial Funding! We offer a wide range of debt financing options to support businesses of all shapes and sizes. It's a convenient and reliable solution for accessing finance and expanding your business.
Ready to get started? Apply today.
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