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Factoring services can provide hope any UK company that sells on credit terms because it provides an instant cash injection. Factoring is only suitable to a company who is trading in the UK company to company and who offer goods or services on credit terms. As an invoice is raised it is assigned to the factoring company, who then collect it.

What is company factoring?

Company factoring is where a company sells its invoices to a factoring company in return for up to 90% of the cash value of the amount invoice. The factoring company then collects the debt and account to the company for the balance, less a collection fee.

Why should a company in the UK consider factoring?

  1. You or your company gets cash quickly by factoring.
  2. You or your company don’t have to collect the debt.
  3. Factoring is a quick and easy way of turning invoices into cash.
  4. The company avoids the hassle of collecting bad debt
  5. The company gets a predictable cash flow
  6. The company only borrows money on the security of what’s been invoiced

Why should a company in the avoid factoring?

  1. Factoring has many costs and as such can reduce profit margins
  2. Some customers do not like dealing with factoring companies
  3. Factoring can reduce a businesses ability to borrow from other sources as no security on book debts can be given.

The UK Factoring Helpline provide a specialist factoring brokerage providing solutions for UK Businesses. Out team has over 10 years experience in the factoring industry. Call 0800 597 4757 to find out how the UK factoring helpline’s comprehensive range of factoring and invoice discounting services can help release the cash in your company.