Growing an iGaming business is now more challenging than before. With more competitors in the market, many iGaming companies are having a harder time with player acquisition and retention. Plus, you can’t forget about the trends and innovations in the industry.
Keeping up with these trends and demands can take a toll on your finances. The good news is that you can use debtor finance to take the steps you need to improve your business. Below, business expert Conrad A. Brennan has written a guide on how iGaming businesses can grow with debtor finance. You can learn more about him here.
Challenges of Growing an Online Poker Business
We’ve already mentioned some challenges in starting and growing an online casino. A current trend we’re referring to above is the rising popularity of cryptocurrency as a mode of currency in online poker. If you’re the traditional type, upgrading your poker business for cryptocurrency may seem like a puzzle.
Plus, there are some unresolved issues with cryptocurrency that keep many companies from adopting it. An example is the respective gambling commissions in certain countries. They want to see more transparency from cryptocurrency before allowing it on online casino games and poker businesses.
Another challenge lies in the clientele. Like the Millennial generation, the younger generation doesn’t like classic online poker and other casino games. They prefer newer and more exciting variants, pushing traditional online poker platforms out of the spotlight.
If you want examples of casino no deposit bonus that have found ways around these challenges, visit this site with reviews. The site has a list of online casinos that have adapted to the current consumer demands. They’re great models to emulate if you want to improve your online poker business to success.
What Is Debtor Finance, and How Does it Work?
Debtor finance is the process of funding a business or company using its accounts receivable ledger as collateral. The most common transaction structure resembles an asset-based loan. Another way to understand it is that you’re using outstanding invoices to get financing for your company.
For example, let’s say you’re the owner of an online casino English players often use. To earn, you send invoices for a monthly membership fee to your clients, which they can pay annually or monthly. Instead of waiting for the annual invoices to be paid, a debtor will give you instant access to a percentage of the invoice as a line of credit.
In exchange, you’ll pay the debtor or finance provider a fee. The cost of using debtor finance often depends on the percentage of the invoice amount that you’ll get. Since it opens you a business line of credit, some financers also charge interest.
Things to Consider About Debtor Finance
Like getting a loan, you also need to get qualified first. The requirements for debtor finance are not as strict as the traditional business loans. The standard requirements for iGaming businesses include:
- Your company or business is under good management
- Your clients have good commercial credit
- Your invoices aren’t owned by other companies or already used as collateral
You may also need to provide information on your business. These include your online poker business’ financial statements and your collection and credit processes.
Reasons to Use Debtor Finance
Whether they’re international or local, online poker businesses tend to grow fast. It means you need access to working capital sooner than other types of businesses. Debtor finance is the perfect approach to growing your business by providing you a bigger funding limit, often within weeks rather than months.
Plus, debtor finance is more flexible compared to traditional bank loans. It can get you more funding than an overdraft, too. It means debtor finance can give your company more control over its cash flow.
Debtor finance is perfect for businesses that depend heavily on digital or virtual work. It doesn’t require real estate or other material possessions to finance your business. It lowers the risks of losing real estate assets, and you can use these for investment and wealth creation instead.
Finally, debtor finance provides a competitive advantage thanks to better liquidity and speed. In competitive industries like the online poker business, these two things are particularly essential. You’d already be making more sales and improving your business while your competitors wait months for payments.
Conclusion
iGaming businesses, like online poker and casino companies, need instant access to more extensive funding. Debtor finance provides the best solution for this problem. We hope that this guide on debtor financing helped you understand how you could use it to develop your iGaming business.
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