Debtor Finance - What Does it Mean?

Posted by matthew begley on Wed, Apr 04, 2012

debtor finance, finance debtors, detor finance, debtor financingDebtor Finance -What does it mean?  

As usual, I got the idea for a blog from a recent conversation I had with a prospective client. A gentlemen that runs a $5,000,000 software company that focuses on developing applications ( apps ) for Apple and the android platforms called me to inquire about debtor finance.  

What our firm does goes by a few different names.  Debtor finance, invoice factoring, invoice financing, accounts receivable lending, invoice discounting...they are all names for basically the same thing.  

What we do is provide advances against business to business accounts receivable.  So, instead of having to wait 30, 60 or 90 days to be paid by your customers you can receive payment today for the vast majority of the value of your invoices.  

For our prospective client this means that through Fast A/R Funding's debtor finance product he can get up to 90% of the value of the money due him from Apple today instead of having to wait 30 days.  The prospective client needs this money to invest in further markeing the app or to begin development of a new app. Instead of having to raise equity by bringing in a partner and selling a part of the business the entrepreneur can just access the trapped working capital in the biggest asset the company has, the outstanding invoices.  

Debtor finance has been around for hundreds of years but what is different about Fast A/R Funding is that we have developed our own software that puts the entire process online.

Because of our online process we can get prospect companies money in as little as 48 hours.

Click on the link below to learn more about our company or give us a call to learn more.

888.833.2286


Tags: Invoice Factoring, Accounts Receivable Factoring