How can you or your business benefit from Business Factoring?

The benefits of business factoring

• A business factoring facility can be set up in short time. This short time can be advantageous to small business.
• Business Factoring for many business owners is preferable to a bank loan as there are no credit checks.
• Businesses in the UK often have to a reduced profit margin if they use factoring. However, if a firm business can absorb the factoring costs with adequate profit margins on its products and services then it can benefit from a factoring facility.
• Businesses can benefit from cash being received the same day on submitted invoices.
• Businesses gain predictable cash flow and can pay recurring overheads such as PAYE and staff costs.
• A business factoring facility enables a business to raise up to 80% or more on its outstanding invoices.
• Using a factoring company can reduce the time and money spent on debt collection since the factoring business can run your sales ledger, as an option.
• You can use the factor’s credit control system to help assess the creditworthiness of new and existing customers – this is especially useful if you do a lot of business with companies whose turnover is lower than £1 million and who do not have to file full returns with Companies House.
• Factoring can be an efficient way to minimise the cost and risk of doing business overseas.