Factoring debtor exclusion

What is factoring debtor exclusion?

In traditional factoring and invoice discounting facilities, many debtors are excluded, reducing funding rates. Financing facilities use this practice to control discounting funding limits in order to protect themselves against the insolvency of debtors. For SMEs locked into whole turnover invoice discounting contracts, little benefit is gained as invoice funding is reduced

Companies can choose to use spot factoring rather than whole turnover invoice discounting. This is often more relevant when numerous debtors are excluded in a factoring facility.

MarketInvoice’s offering

This is why an online marketplace is an innovative system – invoices that were previously disallowed by factors are allowed, increasing funding, allowing businesses to grow and new transactions to occur.

Unlike traditional invoice discounting with MarketInvoice businesses can use the online marketplace to sell the invoices you want to sell and there are no restrictive covenants or personal guarantees. The MarketInvoice platform allows businesses to selectively sell their invoices and there are no ongoing monthly service fees or non-use fees. Where traditional invoice discounters do not accept certain invoices or turn down your application, by posting the invoice on our platform you might be able to find an investor keen to buy.