Business funding, using an accounts receivable ledger as security for a loan. Funds can be used for any purpose including property, working capital, purchase of stock, projects, etc.
Loan size availability is assessed by the size of the ledger, ‘quality’ and age of the debt as well as average turnover. A wide variety of lenders service this market, with loans available for smaller debtor ledgers, through to large size.
Financiers typically lend up to 80 or 90% of the gross value of the ledger and charge a monthly rate and fee for outstanding loan funds, which the customer can usually draw down and repay at will. A debtor funding facility can be used in place of an overdraft and may be kept open and available (without drawdown) as a useful source of urgent working capital as required. It may be also used with a regular repayment program to fund specific requirements.
Debtor funding may be disclosed or undisclosed: either the funder takes over the collection of the debts contained in the ledger, or the customer continues to issue invoices and collect outstandings in the normal way, with repayments to the lender.
australiawide FINANCE has the resources to find the right debtor funding facility to meet your needs, releasing capital to grow your business
