Improve cash flow with debtor finance
Debtor finance is a useful solution to improve cash flow for businesses dealing with clients that impose long payment terms. If you have been forced to turn away orders due to a lack of cash flow, debtor finance may be suitable to fund your growing business.
DEBTOR FINANCE FAQ
Firstly, a Lendfin specialist will review your overall financial situation to ensure that debtor finance is an appropriate solution for your business. They will then review your customers’ creditworthiness, ensure your invoices are free of other financial obligations and assess your credit collection procedures.Once you qualify for debtor finance, your clients will receive a notification of a new receiving address for payments. The financier will review invoices issued to ensure that they are accurate, free of disputes and receivable in 60 days or less. Finally, your business will receive funding for 80% of the value of receivables. Once the client pays the invoice in full, your business will collect the remaining invoice amount less any fees and interest.
Any business that deals with clients with long payment terms may be eligible for debtor finance. The applicant must ensure that invoices are issued to creditworthy customers and are legally valid.
A major benefit of debtor finance is that the cash receivables of the business act as security for the loan facility. As such, real estate security is not required.
To improve your chance of approval, you will need to show: • Last 3 years of business financials. • Details of your business debtors. • Copies of recent invoices issued, including payment terms. • Copies of any supplier contracts. • Details of your credit collection procedures. • Full details of any other credit facilities in use by your business.
Specialised product designed specifically to improve cash flow.
Deal direct with your lending specialist throughout the process.
Low rates and fees compared to other loan structures.