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We source quality cost effective ‘Debtor Finance’  solutions from a number of specialized lenders.

Debtor Finance is a generic description of a funding process based on the value of a business’ accounts receivable ledger. You can use this facility if your business supplies products or services to other businesses on standard trade credit terms.

Take the fuss out of chasing your debtors. Leave it to our team to assist in freeing up your cash flow. As a result, you and your business can capitalize on opportunities. You can focus on growing your business.

Many small businesses looking to grow still find it challenging to access finance, particularly without providing real estate as security.

Ongoing Working Capital

Most Debtor Finance credit lines will automatically increase in response to increases in sales. Therefore it will provide ongoing working capital to fund the growth of the business.

The typical advance rate ranges from 70% of accounts receivable ledger value up to 90%. The remaining 30% to 10%, known as the ‘retention’ is released
following receipt of payment of each invoice by the customer/debtor/buyer.

How does Debtor Finance work?

Debtor finance can be disclosed or undisclosed to your customers. Debtor Finance is a full ledger facility. All invoices are subject to the debtor finance arrangement.

Invoice Financing is a selective invoicing facility. Invoice finance is a specific type of Debtor Finance. Instead of selling all your invoices you decide which invoices and when to sell.

It is also sold as:

Invoice Discounting, Asset Finance, Working Capital Finance, Cash Flow Finance , Invoice Finance or Factoring.

Security requirements vary between lenders. Requirements traditionally focus on:

Why would you use Debtor Finance?

Who would use this type of Facility?

Certainly, any business may have a use for debtor finance. It is especially useful if you are in a growth phase. Or if your debtors, for example, keep extending their payment terms to you.

The financier looks at the strength of the debtor rather than your business. The result is a streamlined credit approval process. The financier uses the invoices as security.

Finance percentage of the Debtors Invoice

In some cases up to 90% of the approved value of invoices (subject to credit approval*) can be financed, minus fees, within 24 hours of processing.

What security is generally required?

The financier uses the invoice as security. The financier takes a fixed charge over the Debtors of your business. In the majority of cases, you do not need to provide any other form of security. Therefore, you keep the other security free for other uses (such as property).

*All applications are subject to the credit approval criteria being met.