Debt financing is an agreement that includes the amount of capital related to a company`s receivables. Receivables are assets that correspond to the outstanding balances of invoices charged to debtors, but which have not yet been paid. Receivables are recorded as assets on an entity`s balance sheet, usually as current assets with invoice payments within one year. Why don`t you shoot with us? Introduce yourself today for the financing of debts on LQD! When selling assets, the financier takes charge of the debtors` invoices and assumes responsibility for the receipts. In some cases, the financier may also provide cash with retroactive effect if the invoices are fully recovered. Debt financing is generally structured as an asset sale. In this type of agreement, a company sells debts to a financier. This method may be similar to the sale of credit portions, often granted by banks. Companies such as Fundbox offer receivables and lines of credit on the basis of debt balances. If Fundbox is approved, it may prefer 100% to a debt balance. A company must then repay the balance over time, usually with some interest and fees. Debt financing can also be structured as a loan agreement. Loans can be structured in different ways on the basis of the financier.
One of the biggest advantages of a loan is that the receivables are not sold. A company receives only an advance on the basis of debtor balances. Loans can be secured without collateral or with guaranteed bills. In the case of a debt credit, a company must repay. We firmly believe that debt financing can be an excellent option – KEY`s reasons are the flexible credit structure, scalability and zero leverage. Our state-of-the-art credit solutions at LQD Financing can help you wade through murky water and ensure you keep the business growing as possible. We focus more than anything on business success and strong relationships. As a transformative leader, we strive to provide adaptable financing solutions. These include a streamlined outsourcing process and the best prices on the market (12%-19%).