Debtor Financing is a facility that allows businesses to receive financing capital related to a portion of accounts receivable. It is another method to boost the working capital/cash flow of a business.
Under debtor finance, lenders provide a limit against the accounts receivables ledger of the business. Businesses can get financed up to 90% of their receivable ledger. They don’t require to provide any additional security.
Similar to a business line of credit, the interest is only charged on the amount drawn and not the entire limit. This allows businesses to stay on top of businesses’ expenses and make growth decisions.
What makes me eligible for Debtors Financing?
|Loan Amount||$5k- $150M|
|Can be used for||
|Repayments||Gets settled against payment of debtors within 60-90 days|
|Security||Secured against current assets of the business No real estate security required|
|Pre-Approval Time||24 – 72 hours|
|Unconditional Approval and Settlement Time||7-10 days|
|Interest Rates||Starts from 4.95% p.a.|