Debtor and Trade Finance

This can be a game changer for Business. It allows your business to finance against its accounts receivables. This lets you improve your working capital and ensure a constant working cash flow.

WHAT IS DEBTOR FINANCE AND IS IT SUITABLE FOR MY BUSINESS?

Debtor Finance is, quite simply, a line of credit linked to and secured by your outstanding accounts receivable.

If your business supplies products or services to other businesses on standard trade credit terms, Debtor Finance can help.

There are a number of variations in how the service is delivered, ranging from Confidential Invoice Discounting (for larger, more sophisticated businesses with a dedicated finance department) to the option of full management of accounts receivables (which allows many of our smaller clients to focus on growing their businesses rather than chasing outstanding invoices).

• Do you sell products or services to other businesses on standard trade credit terms?
• Are your invoices issued for delivered goods or completed services (i.e. not issued on a progress claim/milestone basis)?
• Does your business have an annual turnover greater than $200,000?

TRADE FINANCE - CAN I UTILISE IT?

Markets across the globe are becoming more accessible and cross-border transactions are now part of everyday life for many SMEs. This has led to trade finance becoming an increasingly important business tool. Trade Finance is a form of working capital; the term commonly refers to the financing of cross-border, import/export transactions.

For an Import business it means receiving funding in order to pay a supplier and allow time for the goods to be received, sold and turned into cash. For an Export business it provides working capital until the overseas customer pays for the goods or services that have been delivered. Exporters typically utilise export factoring or bill facilities as the primary means of financing overseas trading, which may be supported by a letter of credit to secure the transaction.