Debtor Financing

Debtor Financing

Debtor financing is another useful finance option to have available for businesses which are growing or have seasonal fluctuations in sales. Debtor finance (also known as factoring) works on the basis that the financier purchases your invoices initially and pays you up to 80% of their value. When the client makes their normal payment, the financier gets thier 80% back and you receive the remaining 20%.

Debtor financing is an option which needs to be used wisely as a substitute or supplement for loans and overdrafts, however with the advantage that is doesn't require collectural security in the same way as do banking lines. Speak to us today to find out how we can help you with your debtor finance.

For more information, read our Guide to Finance

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