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Single Debtor Factoring

Single Debtor Factoring can be hard to obtain – especially with any meaningful prepayment level.

There are only a number of invoice finance lenders who will consider a proposal where a client has only one customer. This number reduces dramatically as the required finance limit increases.

There is an argument that lenders should be willing to provide funding against a good quality single debtor such as Tesco and as stated some lenders are more than happy to do so. It does however increase the risk profile and typically they will need the debt credit insured. A major concern relates to disputes – the debtors willingness to pay rather than their ability to pay.

Lenders will often call this type of proposal 100% concentration

Smart factoring Quotes recently received an inquiry from a client looking for finance of £800,000 against a single debtor.

We were able to do a quick review of the market and establish which lenders were able to help. We received a lot of interest in the proposal but most lenders were unable to assist over a level of £500,000.

The proposal was very urgent for a number of reasons and we were able to agree terms with a lender quite quickly which were acceptable to the prospect. We were able to collate the required information quickly and get the facility set up in the timescales required by the prospect.

If you are looking for a invoice finance facility and you only have one customer please get in touch  with Smart Factoring Quotes today.

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