Debtor and Trade Finance
With property prices currently flat, many of our clients overdraft facilities simply aren’t enough to allow growth as the banks will only lend against the equity in the property securing the overdraft.
Forget the stigma, Debtor finance is not always factoring.
Factoring is when the financier takes over the invoicing and collections.
Debtor Finance or invoice discounting can be undisclosed to your clients customers and the client can maintain the invoicing and collection function.
We have customers who simply do not wish to put the family home up as security.
With Debtor Finance your clients can get paid up front for their invoices when they give their customers payment terms.
Receiving up to 85% of the invoice value up front.
Many of our clients are being asked to offer longer payment terms to their customers (often much larger organisations) or risk losing the business.
This can cause a cash flow drain on the business of up to 90 days. Longer if your customer imports the goods they sell, they often need to pay a deposit or up to 100% up front before manufacturing begins, this can add up to another 60 days where clients have their money our the door before they start getting any cash back in.
This can be draining to any organisation cash flow and cripples the prospect of growth.
The combination of a Trade Finance and Debtor Finance facility can relieve this issue.