A lot of people have the idea that “factoring is expensive”…

…but it doesn’t have to be.

Case study – inexpensive factoring

The client was a small one-man-band business with county court judgements (CCJs) against him. We managed to put him in contact with a reputable factoring company that we have dealt with many times before and that specialise in delivering a quality service to small businesses.

They provided our client with a recourse factoring facility with an initial payment facility of 75% of invoice value so that he could draw 75% against his sales invoices as soon as he raised them, with the balance (less charges) passed to our client when the debtors paid.

The factoring facility provides our client with a collections service whereby the factoring companies credit controllers help with the collection of our clients outstanding sales ledger.

But how much did it cost?

All this was able to be provided at a service charge of just £2,000 per annum.

So factoring doesn’t have to be expensive…