Debtor Finance is a financing product that allows you to maximise your cash flow through borrowing against the outstanding value of your trade debtors. This product is suitable for businesses experiencing rapid growth that sell goods or services on credit terms but have restricted liquidity.
You get cash quickly, and usually don’t have to collect the debt. It is a great way to tap into a source of capital rather than wait 60-90 days to receive it. Costs of factoring vary per circumstances.
You can use factoring to:
1. Get money quickly
2. Avoid the hassle of collecting bad debt
3. Smooth your cash flow
4. Borrow money, secured by your debtors