Factoring is the generic term used by lenders for the provision of cash, for immediate use, secured against the book debts of the Company.

We have helped many clients through the minefield of lenders and their varying services and appetites to lend. We offer advisory and introductory services and due to our longstanding relationships in this market we are able to negotiate and secure better terms and conditions than if a Company director contacted these businesses directly.

We understand the pitfalls and benefits of using these facilities. We can explain and guide a client through what can be a very time consuming exercise, leaving you to do what you are good at.

Our free review of existing facilities or if you are new to the sector will encompass the following:

• The effective level of funding, not just the headline prepayment %;
• The cost of the facility;
• Other disbursement costs and charges;
• The length of the agreement;
• The security requirements;
• The termination conditions;
• The level of service and communication.

Rest assured we can help you through the maze of jargon to find the right lender for you.

Factoring costs

There two costs connected with factoring:

The service fee, which covers the day to day running costs of the sales ledger, typically .0.25% to 2.75% of the turnover.

The discount fee, this relates to the interest charged for the funds in use and is typically 3.5% to 4.5% above base rate.