Invoice Factoring

  • Factoring is a quick and effective way to release cash from unpaid invoices
  • Access up to 95% of the gross value of each invoice
  • Helps maintain a regular cash flow and enables you to meet bills, wages and other key operating expenses
  • You can retain the credit control management and also have a confidential facility
  • All facilities are operated online making the account run smoothly

 

Factoring is the most commonly used form of invoice finance. It is a form of cash flow finance that often exceeds the amount available offered through traditional bank funding.

Factoring allows you immediate access to cash tied up in your unpaid invoices, which could be as much as 90% against the gross value of each invoice outstanding, which means you don’t have to wait 30, 60 or even 90 days for your customers to pay and it helps provide you with the cash flow to pay suppliers, wages etc.

The factoring company will take over your sales ledger management, providing a credit control and payment collections service, leaving you with more time to concentrate on your business.

If your business requires confidentiality and you do not want your customers to find out you are factoring, you can try confidential factoring, this will still provide you with a full sales ledger management service as above, but with the added benefit that your customers will not know your using a any form of factoring facility.

 

Factoring with bad debt protection

Some factoring providers will also offer bad debt protection also known as "non-recourse factoring". If one of your customers fails to pay an undisputed debt or becomes insolvent, the factoring provider will credit you with the amount of the debt up to the approved credit limit, less any agreed excess.

Bad debt protection gives peace of mind as it protects your business against the risks of one or more of your customers failing through insolvency or undisputed debt. It is particularly prudent if you are only trading with one or a handful of customers who you rely on for the majority of your turnover.

 

The Factoring process is simple

A business sells their invoices to the factoring company, who will provide up to 90% of the cash tied up in their outstanding invoices. This money can be made available instantly and will help provide your business with its required cash flow, whilst leaving the factoring company to chase for payments.

Being an independent factoring broker we are not tied to any one lender within the market and you will benefit from our years of experience allowing us to present you with the best options available for your business.

Whether you’re starting a new business, already established or if you are looking to improve your current confidential invoice discounting agreement or simply want to improve your cash flow and are unsure which type of invoice finance facility will suit your business, contact us on 01789 761 374 and speak to an advisor today or alternatively fill in our quick quote form for a call back.

Already Using?

Could we save you up to a third on current costs?

Are you new to invoice finance?

We can provide you with options. Request a call back now

Request a callback



RSS Feed Widget