Debtor Finance
Debtor or Invoice Finance is an arrangement where the financier purchases acceptable trade debts and provides funding of up to 80% of approved invoices. When the invoices are paid by your debtor, the remaining 20%, less a fee, is paid to you.
The accounting functions are retained by you, so from your debtor's perspective, there is no change to any process.
If your business is in a rapid growth phase or experiences seasonal peaks, it can be difficult to access the funds you need to maximize opportunities. This is when factoring can really help – by turning credit sales into working capital to fund growth opportunities. It is directly linked to the strength of your credit sales. As your sales increase, so does the amount of credit you can access, helping you gain further growth.
Features:
- Receive up to 80% of approved invoices
- Access cashflow within 48 hours
- Speedy access to funds
Benefits:
- Credit sales converted to cash payments.
- You can accurately budget your cash flow from your credit sales.
- Increased liquid working capital to generate more business.
- You can purchase more new stock, meet new orders, increase marketing and promotional activities, as well as take advantage of any new business opportunities that may arise.
- Earn discounts for early payments to your suppliers.
- No reliance on strict overdraft facility limits.
- No Real Estate security needed in most cases.
- Availability of funds increases in line with business growth.
Click here to get a quote.
Make an appointment to see an Iden Money Business Finance consultant.
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