Bricks and Mortar Not Required
The sales invoices are the collateral
- No need for bricks and mortar assets, inventory
- Several years audited financials are not required
- It is creditworthy clients that are the main consideration for the debtor finance company
Small business and start-ups are welcome to apply for debtor finance. It is these companies which have the most difficulty in securing traditional finance such as an overdraft or bank loan. While a business does not have to have a solid track record to qualify for debtor finance, it does need a credible business plan, solid goals for the future and verifiable invoices. Debtor finance also allows you to retain control of your business which is not always the case with other finance options such as venture capital. Imagine not having to go through all that paperwork only to have your application rejected.