Factoring
Factoring enables you to get paid when you raise your invoices. It removes the issue of chasing money and the worry of not knowing when you might get paid. As an option you can insure your debts to protect your business.
How it works
Invoice your client on your own stationery and then present the Factoring company with a copy for payment. You receive up to 90% of the value of the invoice straight away. The Factoring company will collect the debt and pay you the balance less the agreed service fee and discount charge.
Benefit
- Unlocking the money tied up in your invoice
- Receive 90% of your invoice value
- Optional Bad Debt Protection to minimise the risk against failing customers
- Flexible finance that grows as your business grows
- Full time credit control
- Quick and simple to set up
Is it right for you? It could be if:
- You are a business to business sales company in the UK
- You have an annual turnover above £50,000 or you are a start-up business.
- You issue invoices with trade credit terms from 14 to 90 days
Case Studies
In 2010 a Contract Cleaning Company was experiencing cashflow difficulties, as they expanded their business, having to meet the weekly wage bill for staff as well as travel costs, but their clients were paying the invoices at more than 60 days. By speedily arranging a factoring facility we gave them the breathing space to concentrate on their business on not constantly worrying about the bank balance.
