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In the UK there are lots of invoice factoring companies. There are lots of small to mid size invoice factoring companies and some factoring companies are the big high street banks. To confuse matters even more there are international invoice factoring companies and even niche invoice factoring companies that specialise in particular industries that will consider propositions that a bank would normally decline. With so many invoice factoring companies to choose from the process can be long winded. It’s a competitive business with many suppliers so it pays to shop around.

Call 0800 597 4757 to speak to a factoring adviser. Our advice is independent and our service is free use because we receive commission from Invoice Factoring companies we work with. The UK factoringhelpline.co.uk is independent Invoice finance broker with over 10 years experience of working with independent invoice factoring companies

An overview of invoice factoring

  • Invoice factoring frees up working capital against a company’s outstanding book debts.
  • Invoice factoring is used to support growth.
  • Companies looking to fund management buy-outs can also consider invoice factoring.
  • Companies that are insolvency can use invoice factoring to aid business recovery procedures.
  • Companies that need to access funds quickly often use invoice factoring.
  • Invoice factoring companies can usually guarantee funds within 48 hours of raising invoices
  • Rather than having to wait for their debtors to pay in accordance with agreed credit terms.

An overview of how invoice factoring companies charge clients

Standard costs arise in two ways – interest and fees. There may be additional costs for additional requested services.

  • Discount charges
  • Credit management fees
  • Credit protection charges

An overview of the advantages of invoice factoring companies

  • An agreed prepayment facility is set up allowing a draw down.
  • Factoring companies can also take over the day to day running of a company’s sales ledger
  • Carrying out credit checks on debtors is an added benefit of using factoring companies.
  • A factoring company can sending out statements to customers
  • The telephone credit control function can be outsourced.
  • Collecting payments and taking legal action if required can all be done by factoring companies.
  • When signing any agreement check the notice period to end to service – most factoring companies require three months’ notice.

An overview of the disadvantages of invoice Factoring companies

  • They take a legal assignment over book debts
  • All invoices must have a printed assignment clause to inform debtors of the factoring arrangement
  • There are a great number of invoice factoring companies so choosing one can be a long and difficult process.

In the UK there lots of independent companies and the process can be time consuming. Call 0800 597 4757 to get a detailed overview the companies to consider and compare invoice factoring quotes instantly.