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.

Debtor finance is ideal for businesses that are:drawing graph

  • 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