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Debtor Finance, Debtor Finance Blog

What to look for in a debtor finance company

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Debtor finance is becoming an increasingly viable solution for small businesses looking to stay afloat in an often tough economy.

Everyone knows that cash is king, and high profits and sales mean little if your backlog of invoices isn't being fulfilled. If you fail to maintain a steady cash flow, you'll struggle to find the means to fuel and grow your business.

Debtor financial solutions provide an easy fix, simply trading a tied-up asset (receivables) for another (cash) that can be put to use instantly. With more and more providers in the market these days, you should take the time to choose the right service for you - so how do you go about deciding on a debtor finance company?

First, you should ensure the company itself is an independent organisation, unattached to any big banks or lenders. In addition to offering a faster solution than these bigger corporations, you can be assured of receiving a warm, personal service when you deal with these dedicated debtor finance companies.

You should also enquire about the company's approval process and turnaround time and see whether you'll receive the cash you need in time. Nowadays, the norm is to have the funds deposited in your account within 24 hours - anything later than this simply isn't worth your time.

One of the main advantages of the best debtor finance companies is their ability to cut through layers of red tape to give you access to quick cash, so look for a firm that can guarantee you'll receive your funds in a timely manner.

It's also important to see whether the company really understands the unique needs of your business. Debtor finance is mainly tailored towards smaller businesses needing an extra hand with their cash flow management, so a good service provider should understand the workings of small companies and be flexible enough to work on your terms.