Single Debtor & Confidential Single Debtor Finance Advantages

In addition to the obvious advantage of accelerated cash flow from Single Debtor, there are several other advantages to Single Debtor or Confidential Single Debtor Finance.

Customer relations and cash flow can be improved with the use of Single Debtor or Confidential Single Debtor Finance. With Single Debtor the responsibility for administering and collection of your sales ledger rests with the Single Debtor or Confidential Single Debtor Finance companies, therefore a company no longer has to pressure its customers for payment on overdue accounts.

When customers are aware that a Single Debtor or Confidential Single Debtor Finance is involved, customers may even pay their bills more promptly improving your cash flow. Since the Single Debtor or Confidential Single Debtor Finance companies may also be handling accounts for several other of their suppliers, customers will be careful not to jeopardise their credit rating, as non-payment to one supplier may immediately damage their rating with others. Single Debtor or Confidential Single Debtor Finance may even save a company money. Many firms are not able to duplicate their services offered by a Single Debtor or Confidential Single Debtor Finance company on their own for the same cost.

• Credit investigations

• Collection of past due accounts

• Record keeping, and all related accounts receivable costs may be significantly higher if a firm must expand its own credit department or use an outside collection agency

• Freed of credit and collection problems, a company can concentrate its efforts on increasing profitability

• A company using a factor can often obtain more credit information on new customers more quickly

• Factors may be able to increase a company's sales volume by advising it of other potentially desirable customers

Single Debtor or Confidential Single Debtor Finance can also provide a company with other services such as letters of credit and import inventory financing. Some Single Debtor or Confidential Single Debtor Finance companies even use a factor for a division or subsidiary, rather than setting up a separate credit department. Finally, Single Debtor and Confidential Single Debtor Finance companies can be utilised to avoid major credit errors when building a market for a new product line.