Business finance

Debtor finance

Debtor finance, also known as invoice finance or factoring, allows you to use your accounts receivables as collateral for borrowing giving you immediate cash for the value of up to 80-90% of the value of your invoices.

Loan size

$5K To $200K

loan term

30 to 90 days

Interest rate

Up to 30%

Approval speed

Fast

Debtor Finance

Key features of debtor finance

One of the key problems small business owners face is the delay between a sale and the payment of the invoice tying up working capital. This is exacerbated if your customers are slow to pay.

Getting immediate access to your cash allows you to reinvest in your business and grow faster.

Compare debtor finance

Advantages and disadvantages

Advantages

What are the advantages of  debtor finance

Disadvantages

What are the disadvantages of debtor finance

Common uses & good to know

Everything else about debtor finance

Common uses

Borrowing against your invoices allows your business access to the cash from your sales in as little as 24 hours.

Debtor finance mitigates the risks and costs of late or non-payment of invoices which can be a substantial burden for small businesses.

The approval process is often very straightforward as many lenders can now link up directly to your accounting and invoicing software and provide immediate approvals.

Good to know

Debtor finance can be costly as you do not receive the full value of your invoice and you simultaneously pay interest on the amount borrowed.

Repeat late or non-payments by your customers could impact your fees, credit score and ability to secure invoice finance going forward.

Alternative Commercial Lending options

Other Business Finance Products​

Secured Business Loan

A secured business loan is a loan made by a bank or finance company where the lender requires the borrower to pledge assets as collateral against the loan.

Business line of credit

A business line of credit is a very flexible form of lending where you have cash available to draw down on as and when you need it.

Trade finance

Trade finance is any form of finance that is issued to support international trade, including letters of credit, debtor finance, & export credit.

Commercial Lending

Using Debtor Finance to Manage Business Cash Flows

Any business owner knows the importance of managing cash flows to ensure that liquidity remains strong and that the business has the ability to take advantage of sudden growth opportunities or big contracts. Late payments impact businesses severely as cash that could otherwise be reinvested in growing stock, marketing or

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Commercial Lending

How to Write a Business Plan to Secure Funding

Whether you are starting a new business, changing the course of an existing business or simply re-evaluating your company’s current condition, a business plan will serve as a roadmap for you and your team. The process of writing a business plan will also help refine your ideas and consider how

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Commercial lending Blog

Recent Articles

Debtor finance FAQ

Frequently asked questions

If you have outstanding invoices, you may qualify for invoice finance. Lenders will focus on the characteristics of your invoices ahead of your business’ finance and operating metrics.

Debtor finance is more readily available to companies with an established trading history and long term customer relationships. You will receive better pricing for your invoices if you can show that specific customer has a history of full, on-time payment.

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