Debtor Finance is your friend!
When your cash flow slows to a trickle, everyone hurts! As people take longer and longer to pay you, things get tight, and the ripple effect spreads quickly. And when you’re owed money, you can’t pay your own suppliers in a New-York-minute like you usually do. Sometimes it means you have to let new business slip by too, which ruins everyone’s day.
Enter Debtor Finance! This little beauty turns your unpaid invoices into cash flow by giving you access to up to 80% of the money you’re already owed. It keeps the money tree growing and you get the remainder of your dosh when your customer pays their invoice.
You don’t have to put your own home on the line either so it’s a savvy alternative to an overdraft that lets you keep your head well away from the chopping block. You’re also not cut off at the value of your security.
Which is why Debtor Finance is your friend.
So what’s the big deal about Debtor Finance?
- Cash flow! It turns your sales into cash in around 24 hours.
- No real estate security necessary – Mum’s house is safe.
- It stands alone and won’t invite your old enemy Mr Risk in for a drink.
- No need to sell the holiday house! Gives you access to cash without having to say goodbye to assets.
- It’s as flexible as a master yogi, with your pot of gold growing along with your sales.
- No more closing down sales! Your days of discounts for prompt payment are over.
- Your bargaining power rises! With cash under your belt, you can haggle for better trading terms and discountrsGives business the ability to negotiate better trading terms with suppliers, take advantage of prompt payment discounts and bulk-buying.
If it’s so fantabulous, why haven’t I heard of it before? Why doesn’t everyone have it?
- Not all the big banks offer it so it isn’t shouted about from the rooftops.
- People are a bit funny about it and think it’s a sign of a failing business! Not true!
It’s the smart cookies who take advantage of Debtor Finance because they know how to make things work for them. More cash flow means more growth.
- Some people are a little bit worried their clients will know they have it – but they don’t have to. It depends which baby you go for.
- People think they have to put their home on the line … wrong again! No security needed.
- There’s a nasty rumour its expensive … but lenders only charge a bitsy fee, and most terms are made especially for you!
- A lot of little chickies don’t know how to access it … and that’s where we come to the rescue!
If you want to keep it on the down-low
Lucky you! There are two types of Debtor Finance! Disclosed and Confidential.
Great news if you’re a bit thingy about your clients finding out you have it because they don’t have to! Read on:
Disclosed facility. This is the Works Burger of the Debtor Finance menu. The lender will slap it all on for you - debt collection services, sales ledger administration and reporting. Great for businesses that don’t fit the mould for traditional banking products or who are trading out of difficulty with creditors.
Confidential facility. A great choice for businesses that want to pick and choose when they need invoice funding. You’ll like this if you have an in-house credit management facility and are cracking on without major creditor issues. A big plus … you can use it like an overdraft when you need it, like if you need to fund a major stock purchase to get a project off the ground.