Invoice Debtor Finance - A Quick Guide For Small Businesses
The vast majority of small businesses use invoice finance to help them pay their suppliers. It’s a popular way to get paid more quickly and reduce the risk of cash flow problems. But what exactly is it and how does it work? This guide explains everything you need to know about invoice debtor finance . What is invoice debtor finance? Invoice debtor finance, also known as invoice discounting, is a way to get funds to pay your suppliers. In other words, it's business financing that allows you to borrow money against unpaid invoices. The amount you can borrow depends on the value of your invoices and how quickly they are likely to be paid by your customers. Small businesses often use invoice financing because they don't have access to more traditional forms of financing such as bank loans or overdrafts. Invoice financing can also help protect companies against cashflow problems caused by slow-paying clients and late payments from clients who aren't able or willing to pay t...