The following four steps are an over view to factoring, to learn more about factoring click here:

• Your business raises an invoice and sends a copy to your factoring company
• The factorer then advances you a % of the gross invoice value, the percentage is usually around 85%.
• Your factoring company will then send out statements and collect the cash previously invoiced.
• The factoring company will then pay you the rest of the balance, minus charges.

Factoring is designed to help you release money tied up within your company. The largest asset a company has is typically their unpaid invoices. By using a factoring service you can release up to 85% of the gross balance invoiced for. This will then allow you to put the money straight back into your business without waiting for overdue invoices etc.

An added benefit of using a factoring service is that the factorer can also help you with the management and collection of invoices, for a small business