5 Reasons SMEs Should Apply for Debtors Finance
Post-COVID, a lot has changed in the business world across all geographies. Enterprises, especially in the SME sector have been compelled to reboot their infrastructure to stay relevant in the new normal. The strict compliances and loan policies of the traditional financial institutions are hardly making it any easier for them. Hence, small and mid-level business owners are seeking reliable private financing options to fulfil their cash flow needs. On that note, we will discuss debtors finance and why an enterprise should think of applying for it. What is Debtors Finance? Debtors finance allows enterprises to access financing capital by pegging the accounts receivables. You can get up to 90% of your accounts receivables to boost cash flow. The lender puts a credit limit for the same. You can use the limits against your accounts receivables ledger.