A non-recourse invoice finance agreement allows businesses to obtain immediate funds by selling their invoices to a financial institution or invoice finance company. In this arrangement, the financial institution assumes the credit risk associated with the invoices, meaning that if the customer fails to pay, the financial institution bears the loss instead of the business. The business receives a percentage of the invoice value upfront and the financing company collects payment from the customers. If a customer defaults, the financing company absorbs the loss, protecting the business from bad debts. However, non-recourse agreements may come with higher fees or stricter eligibility criteria.
What is “EBITDA”?
EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortisation. It’s a financial metric used to evaluate how well a company is performing, yet many business owners aren’t familiar with this important measurement or how it impacts their business. EBITDA doesn’t take into account how a company is financed through
