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Single Debtor Factoring

Friday, September 11th, 2009

Single debtor  factoring as would suggest provides debtor finance against one single customer. As with any other factoring factoring facility funding is provided for up to 80% of unpaid invoices for up to a 90 day period.  However from the finance companies point of view providing finance against one customer can prove quite risky and as such not all finance companies will be keen to offer a facility.

It is unlikely a high street bank will provide single debtor factoring however one or two of the larger and generally more flexible and commercial factoring companies will offer a facility. However with any tricky finance deal there will be one or two caveats. The debtor  must be strong and the credit limit will need to exceed the total facility required.  In addition it is recommended that credit insurance is taken out against the debt. Therefore in the event of any this will protect not only the funder but also our customer. I think this is common sense really. A default with a good spread of customers will always be painful but more often than not can be absorbed into the business. Imagine if you had one customer and they go bust and you havnt any credit insurance. Not only will you go bust but any  personal guarantees may possibly be called upon [potentially resulting in bankruptcy. Perish the thought.


XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.

XL Business Finance Limited are authorised and regulated by the Financial Conduct Authority FRN 718737).

XL Business Finance, Eaton Place Business Centre, 114 Washway Road, Sale, Cheshire M33 7RF UK.


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