Commercial factoring overview and benefits

Commercial factoring benefits

• In most businesses cash flow as unpredictable but with a decent commercial factoring facility that unpredictability is removed.
• A commercial factoring facility removes the need for businesses to take other expensive methods of finance such as taking a out commercial mortgage on the business premises.
• One of the advantages of commercial factoring is debts get paid as quickly as 24 hours after an invoice is raised.
• After securing a commercial factoring facility business owners can concentrate on running their businesses without having to chase up debts the whole time.
• Some of the best commercial finance rates are available using commercial factoring.
• A commercial factoring facility solves the major issue your firm faces everyday in cash flow and enables any business to trade on profitably as long as it is raising invoices.
• Out of all the choices in working capital solutions. Commercial factoring is one of the best because its success is based on the sales of the business.

Commercial factoring disadvantages

• Factoring is generally suitable for all business types, but it depends on sales.
• Factoring is subject to lots of charges and small print in contracts
• A commercial factoring facility reduces gross profit as it takes a percentage of all the invoices.
• The business and its owners will still be liable for bad debts if the invoices don’t get paid.
• Some customers do not like dealing with businesses that use a commercial factoring company to collect invoices.

The factoring helpline is one the UK’s leading commercial factoring advisers. Call 0800 597 4757 and a commercial factoring adviser will carry out a business health check and provide an overview if your business is suitable for a commercial factoring facility.