Debtor finance

Debtor finance is a process to fund a business using its accounts receivable ledger as collateral.^[1] Generally, companies that have low working capital reserves can get into cash flow problems because invoices are paid on net 30 terms. Debtor finance solutions fund slow-paying invoices, which improves the cash flow of the company and puts it in a better position to pay operating expenses.

Types of debtor financing solutions include invoice discounting, factoring, cashflow finance, asset finance, invoice finance and working capital finance.