Debtor financing is an umbrella term that refers to a number of cash flow financing products. The two most common debtor financing products are invoice factoring and invoice discounting. Companies use debtor finance because they have financial problems due to slow-paying clients. Often, they need to offer net 30 terms to clients even though they can’t afford […]
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Debtor Financing Costs Explained
Debtor financing is an umbrella term for two cash flow finance programmes called factoring and invoice discounting. These solutions allow your company to finance slow-paying invoices, which improves cash flow. This article helps you understand the rates and fees associated with these two solutions. This article assumes that you are familiar with how factoring and invoice […]
Differences Between Factoring and Invoice Discounting
Summary: Invoice discounting and invoice factoring offer financing based on your accounts receivable. Both products offer similar benefits to client. While there are similarities between these products, there are also a number of important differences. This article helps you understand the main differences between factoring and invoice discounting so that you can make an educated […]
Advantages of Debtor Finance
Debtor finance solutions have been gaining popularity in Australia as a way to finance growing companies that need cash flow. This article presents the most important advantages of this product to help you determine if this financing programme is right for your company. If you are not familiar with debtor finance, read “What is Debtor Finance?” first. 1. […]
Disadvantages of Debtor Finance
Like any business financing solution, debtor financing has a number of advantages and disadvantages. This article presents the most important disadvantages of this product to help you determine if this financing solution is right for your company. 1. Debtor finance solves only one specific problem The most important limitation of debtor finance is that it […]