How debtor finance turns slow-paying customers into same-week cash.
Growing businesses often run short of cash precisely because they are winning work. Every new customer on 30, 60 or 90-day terms is money earned but not yet received — and wages, rent and suppliers won't wait. Debtor finance bridges that gap by advancing funds against your outstanding invoices.
How it works
You invoice your customers as normal. The lender advances a percentage of each approved invoice — commonly up to 80% — usually within 24 to 48 hours. When your customer pays, the balance is released to you, minus the lender's fee.
- Invoice your customer as usual
- Lender advances up to 80% within days
- Customer pays the invoice on normal terms
- You receive the balance, less the facility fee
Why it suits growing businesses
Unlike a fixed loan, a debtor finance facility grows with your sales. Win a bigger contract and the available funding increases automatically, because it's tied to your invoices rather than a set limit. There's also no property security required in many cases — the invoices themselves are the security.
What lenders look at
The quality of your debtors matters more than your own balance sheet. Lenders want to see creditworthy customers, clean invoice documentation and a spread of debtors rather than one dominant account.
The bottom line
If slow-paying customers are the only thing standing between you and your next stage of growth, debtor finance turns your sales ledger into working capital — without giving up equity or loading up the property with another mortgage.
