Why use debtor finance?
The main reasons are there is no real estate security and cash flow is improved.
With debtor finance, the the invoice value secures the finance, so the small businesses commercial property is not at risk. This is compared to a commercial overdraft where normally some form of property is needed for security.
Because there is no property security these assets can be used for other purposes such as wealth creation and property investment. Further the debtor finance facility is not capped by the property value.
With no real estate security is needed debtor finance approvals can be done quickly. Weeks as opposed to months. Once established the funds are normally available within a day.
Another major advantage of debtor financing is flexibility. As your business gets larger then your facility can also increase. There are No interest cover or debt-servicing cover ratios to comply with. The debtor finance facilty is based on current receivables and is ideal for fast growing businesses.
In conclusion, debtor may also give you an advantage over your competitors as youmove quickly.
Want to know more, call us.