Loan Amounts and Funding Terms
Loan terms between 3 months and 5 years with fixed monthly payments
Loan amounts over £2,000
Have you been trading for more than 12 months?
Are you a UK registered business?
Do you have slow paying or outstanding client invoices?
Debtor factoring is a type of business loan used to improve the financial health of a company by using its accounts receivable as collateral.
Many companies who are currently experiencing low working capital reserves use debtor finance to fund slow-paying or outstanding invoices, with the aim of improving cash flow and gain access to readily available funds for day to day operation.
We assist companies and borrowers to increase their spending power by obtaining the best funding options and facilities, quickly and efficiently, whilst ensuring your company requirements are fully catered for.
How to apply for debtor factoring?
Fill out our application form in less than 5 minutes
Your application will be allocated to your dedicated case manager
Your case manager will be in touch within 4 working hours
They will collect all required documents to process your application
You will receive a decision within 48 hours in most circumstances
You will receive your funds within 48 hours of acceptance in most circumstances
The Benefits of Debtor Factoring
Flexible Terms and Borrowing Amounts
Debtor factoring is available over 3 months to 5 years.
Finance up to 100% of your ledger, to subject affordability assessments and credit checks.
All proposals are subject to full underwriting & acceptance.
Increased Spending Power
Debtor Factoring allows you to get immediate cash for your outstanding invoices.
Instead of waiting for your customers to pay, you can sell your invoices to a factoring company who will provide you with a percentage of the invoice value upfront.
This can be a very effective tool for businesses that struggle with long payment cycles or have limited access to traditional financing options.
Save time and Resources
Using factoring you do not need to chase and process payments from your clients as the lender will take over for you.
This frees up your time and allows you to focus on running your business. You will no longer need to wait for your clients to pay their outstanding invoices which improves your financial stability and long term security.
There is minimal paperwork that needs to be provided when applying for debtors factoring.
In order to apply you only need an up to date debtor’s ledger, 3 months business bank statements and the company’s latest accounts, along with proof of identity.
Debtor factoring can be a vital source of funding for companies waiting for invoices to be paid. With many companies reliant on prompt payment of monies owed to ensure efficient operation, late or non-payment of these bills can have a significant impact on an business’s cashflow and operation.
Debtor’s loans offer;
- Continuous cash flow
- Up front payments on long term WIP
- Monthly manageable payments to meet budgets
View our full range of business finance facilities here
Frequently Asked Questions
What is Invoice Discounting?
Discounting is similar to invoice factoring, however the main difference is that you still remain in control of your sales ledger and therefore debts. Because of this, fees tend to be lower.
SMEs are currently chasing £50 billion in late payments from outstanding invoices.
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What is Invoice Factoring?
It is a type of invoice finance offered to companies who want raise finance secured on their sales ledger.
Invoice factoring is also known as debt factoring and differs from the other type of invoice finance known as invoice discounting
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What are short term business loans
A short term business loan is a type of financing that has a repayment period of less than one year.
These loans are often used by businesses who need funds to cover gaps in cash flow or unexpected expenses.
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