- 11 Jul
What Is A Bank Waiver?
A bank waiver is a document, issued by a bank, that waives its rights to the book debts of a company so that the company can use these book debts to support an invoice finance facility, such as factoring or invoice discounting. Waivers are often required as the outstanding sales invoices, or book debts of a business, are encumbered by any existing charge over assets or debenture, held by the bank, in order to secure their overdraft lending. Waivers are commonly required when a company seeks an invoice finance facility as the invoice finance will often either clear the bank overdraft or substantially reduce it. In such situations, the bank are often happy to issue a charge or debenture waiver.