Invoice factoring and finance for SME businesses

Invoice factoring and finance for SME businesses

What is an SME?

The term SME stands for ‘Small and medium enterprises’. In the UK an SME is business whose number of staff or yearly sale falls below certain limits.

The UK provides general advice and information to SME businesses to provide then access to business funding such as invoice factoring and invoice discounting.

The invoice factoring service allows business to search for potential sources of help invoice factoring to develop businesses.

What is invoice factoring?

Invoice Factoring is the process of a business that sells on credit to sell its invoices to a third party called an ‘invoice factoring’ company.

An invoice factoring company will process the invoices and allow a business to draw funds against the money owed on the purchased invoices.

An invoice financing company provides the following service:

  1. Finance
  2. Debt collection
  3. Ledger management service.

What would an invoice factoring suit an SME’s finance need?

Invoice factoring is commonly used by SME businesses

  • To improve cashflow finance
  • Reduce administration overheads
  • Provide value added service allowing them to compete with large more established businesses

The services are completely free of charge so if you are involved as a construction subcontractor in the building and construction industries and are interested in factoring and other cashflow solution then please call on 0800 597 4757

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