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In business there is saying that ‘cash is king’. Every day firms and companies face financial issues because their money is tied up in unpaid invoice. On paper most businesses are but face cashflow difficulties because they cannot pay their bills on time. A factoring or invoice discounting facility can solve this problem. Factoring agents are able to research all areas of all factoring companies you wish to work with.

Choosing the right factoring company is not an easy decision to make and that is why it is recommended to use the services reputable factoring agents.

There are several aspects that need to be considered before a company decides on which factoring company to use.

In deciding on which factoring company to use there are lots of points to consider and that is why factoring agents can be of great help you.

What is factoring and invoice discounting?

  • Factoring is when a business sells its invoices to a third party and then the factoring company control the sales ledger and collects the debts. The customer is aware of the fact that the invoices have been factored.
  • Invoice discounting is an alternative way of drawing money against your invoices. However, the business retains control over the administration of your sales ledger. The customer is not aware of the fact that the invoices have been discounted.

How does factoring and invoice discounting work?

  • Factoring gives business up to 85% payment for a submitted invoice. This enables a business improved cashflow.
  • Invoice discounting works by the invoice discounting firm checking the business, its systems and its customers. The invoice discounting firm then agrees to advance a certain percentage of the total outstanding value of invoices

What can factoring agents help advice on?

  • Factoring agents can help you choose a specialist factor that deals specifically with your sector
  • A good firm of factoring agents can advise on monthly minimum invoice values so that there is no confusion at the end of any given month.
  • Factoring agents can negotiate decent contract durations
  • Factoring agents can negotiate affordable factoring fees. Please not that factoring fees vary from 1-3%
  • Reputable factoring agents can make sure a factoring firm provides an acceptable level of service

How do factoring agents get paid?

Factoring agents earn their fees by receiving a commission from the factoring company that a business enters into a contact with.

If you’d like to speak to one of our factoring agents then please call 0800 597 4757 for a full assessment of your business cashflow needs