What is Cashflow Finance?
Cashflow finance is a specialised form of finance that accommodates a business’ need to access flexible funding, either to support growth or provide working capital to overcome difficult trading conditions. This is done through a process generically known as debtor finance, which supplies working capital primarily secured by a business’ accounts receivables.
Debtor finance (also known as Factoring or Invoice Discounting) is the process of providing finance by selling a business’ debt receivables, in return for immediate access to funds until the debt is paid by the customer.
- Starting up and encountering resistance from banks
- Expanding through acquisition
- Undergoing rapid expansion but struggling to finance the growth
- Restructuring and recapitalising their operations
- Facing challenging trading conditions and needing financial support
- Unable to increase their funding due to the constraints of their existing lenders
Hermes has a number of different debtor finance products designed to address the specific needs or working capital requirements of different businesses. By utilising a Hermes debtor finance product a business will be able to:
- Receive an immediate working capital injection
- Improve its cashflow quickly
- Capitalise on business opportunities as they arise
- Gain access to scalable funding which increases as sales grow
- Enjoy the benefits of having a financial partner without dilution of ownership