Credit Factoring Advice
Credit factoring is a business financing method that allows a business to get its invoices paid in as little as 24 hours. Credit factoring can provide a business with the necessary capital to operate the business, pay suppliers and grow – and NOT have to wait around for client to pay!!!
Please note that credit factoring is not a business loan. Rather, credit factoring involves a business selling its invoices at a discount for immediate cash. The credit factoring company waits to get paid, while the business gets immediate use of the funds to fund day to day activities. Credit factoring is a medium to long term continuous credit arrangement between a credit factoring company and the seller of business goods or services on credit.
Value Added Service a credit factoring company can offer:-
- The factor will usually set credit limits for customers
- A factoring company can arrange bad debt protection through a trade credit insurance companies
- Financing the trade credit requirements of the client's debtors.
- Management of the collection of debts and covering the credit risk.
- Recourse Credit Factoring
- Non-Recourse Credit Factoring
Credit Factoring facts:
- Credit Factoring a financial transaction whereby a business sells its invoices to a factoring company at a discount in exchange for immediate money.
- Most credit factoring companies guarantee payment of up to 90% of approved invoice value with in 24-48 hours
- Credit factoring speeds up the usual business cashflow cycle
- Factoring is offered by many high street banks
- Credit factoring is also offered by many niche factoring services around the UK
- To qualify for credit factoring there are no credit checks
- A credit factoring company is more interested in a your customers credit because they are the ones who have to actually pay the invoices
- Some credit factoring companies will factor selective invoices.
The UK Factoring Helpline is a leading provider of business finance solutions such as; Factoring, invoice discounting and asset based lending. Call 0800 597 4757 or apply online for an informal chat about credit factoring finance and other business cashflow solutions.
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The UK Factoring & Invoice Discounting Helpline is a leading finance brokerage specialising in factoring and invoice discounting. We offer free, independent and impartial advice on business finance options. We have been helping businesses of all sizes and commercial sectors solve cashflow problems for more that 10 years. We have found factoring and invoice discounting facilities for many thousands of businesses and remain in contact with all our clients.