Business Debt Factoring

Business debt Factoring in the UK is a business service for businesses whereby a business sells its unpaid invoices to a third party, called a business debt factoring company, at a discount in exchange for upfront money of up to 80-95% in value of the invoice with which to finance continued business.

Is business debt factoring right for your circumstances?

Please note that business debt factoring is a long term commitment and should never be rushed into without taking advice. The business debt factoring company collects the debts owed to a business based on the approved invoices submitted and provides payment upfront within 24-48 hours of invoice approval.

• A business debt factoring company acts a bit like a debt collection agency for business of all sizes and industry sectors
• Business debt factoring is used to improve cash flow for business owners who cant wait 60-90 days to be paid. The customer then pays the factoring agency.
• Most business debt factoring firms offer the facility of an outsourced book debt

collection department which can reduce costs on staffing

• Factoring firms buy invoice that have been approved and then allow a business to draw funds against the money owed to the business.
• A factoring business will process the invoices and allow you to draw funds against the money owed to your business.