At Bizgro, we understand that sometimes businesses need to access funding from banks or third parties to ensure their business can meet its demands.
One type of funding that banks provide is debtor finance. Debtor finance is where your business 'sells' its customer invoices to the lender. The lender then provides the funds straight away for the customer invoices. The business's customers then pay the lender the amount on their invoice. The lender receives interest and a management fee for providing this facility. In most cases, if the customer does not pay their invoice after 60 days, then the business has to pay the lender back the amount of the invoice that had already funded when the invoice was issued to the customer.
Due to the nature of debtor finance and the steps involved, an experienced accounts person needs to deal with the lender to ensure everything is reconciled correctly. Bizgro has helped clients managed their debtor finance obligations to ensure the lender is happy and funds are received promptly. In most cases, our clients, through correct customer management are able to build their business up so they no longer require debtor finance.