FAQ: What security is required for Debtor Finance?
What security is required for Debtor Finance?
Real estate security is not usually required for Debtor Finance approval. Generally, the finance is secured by the value of the debtor ledger combined with a company charge and director or shareholder guarantees. Specific assets may be required as additional collateral, but generally real estate security is not required.
As the limit of the Debtor Finance facility is primarily determined by the debtor ledger, most facilities automatically grow in line with sales rather than being linked to the relatively fixed value of property.
Please note that this information is of a general nature only. You should consult an accountant to obtain information specific to your situation.
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