The letter of financial support is used to obtain audit evidence for events which may give rise to business risks such as a net liability or net current liability position. A Letter of Financial Support can show a lender that they will be guaranteed that the loan will be repaid.
Unfortunately, the adverse effect of having a bad credit score – between 300 to 650 (poor to low) according to CTOS – is extreme. Having a bad credit score could lead to your applications for loans or credit cards being rejected.
The maximum funding are up to 80% against the receivables purchased. The balance is held in a contingency reserve and refunded after the receivables have been collected