This is a generic term referring to the process of funding a business using the accounts receivable ledger, in other words the debtors’ book, as collateral. The aim is to improve the cash flow of a business by releasing value tied up in slow paying invoices. Business Bureau has access to a service provider that makes use of Invoice Discounting and Debtor Book Finance in order to make these funds available. These products are used on an on-going bases and not just as a once-off solution.

These products allow clients to sell single or multiple invoices when cash flow is under pressure or when cash is required to actualise a business opportunity. This product allows businesses to get advances on cash due to them from clients, rather than waiting for those customers to pay. Long remittance terms can cause a business to lose out on opportunities and growth possibilities due to the lack of cash flow. Invoice discounting releases these funds and allows the business to utilise the cash to expand.

The product is aimed at clients with one or more large debtors, which are either blue chip companies or qualify for credit insurance.

SOME KEY FACTORS TO CONSIDER FOR QUALIFYING