What is Commercial Finance?
Commercial Finance is a generic term for a range of asset based finance services which include
- Invoice Discounting
- International Factoring
- Supplier Finance (or Reverse Factoring)
- Asset Based Lending
There are many variations on each of these product sets (and the precise nomenclature varies from market to market) but all exist to provide working capital funding solutions to businesses. The nature of the services provided by the Commercial Financier will vary accoring to the Clients' particular requirements but all of these solutions have in common the idea that funding may be offered based upon the debt invoicing created by the client company.
The services are particulary attractive to businesses which are in a growth phase and do not have a sufficient asset base or collateral to support funding through traditional mechanisms but the services also have their place in the funding of a business at any stage in its lifecycle.