Debtor finance

Debtor finance is a process to fund a business using its accounts receivable ledger as collateral. Generally, companies that have low working capital reserves can get into cash flow problems because invoices are paid on net 30 terms. Debtor finance solutions fund slow-paying invoices, which improves the cash flow of the company and puts it in a better position to pay operating expenses.

Types of debtor financing solutions include invoice discounting, factoring, cashflow finance, asset finance, invoice finance and working capital finance.