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Debtor Financing

oboloo Glossary

Debtor Financing

Debtor Financing is a form of secured business funding that enables companies to use their outstanding invoices as collateral for loans. Through debtor financing, businesses can receive quick access to working capital which can be used to finance operations, pay salaries or purchase new equipment. When a company applies for debtor financing, the lender will assess the company’s financial situation by analysing its outstanding invoices and overall creditworthiness. If approved, the lender will advance funds on the invoices, minus any fees and interest, resulting in a significant cash infusion for the company. Debtor financing can help bridge gaps in cash flow and provide businesses with the funds they need to grow and succeed.

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