Factoring does not entail a large change in the day-to-day operations of your business. Instead of sending invoices to your customers, you send them to the factoring company. Within 24 hours they will advance up to 95% of the invoice’s gross amount to your business.

The factoring company will send the invoices to your customers and keep a copy of the invoices for your sales ledger. At the end of each month, they will produce a statement for each of your customers and they can furnish you with an aged debtors list.

Once your customer has paid the invoice to the factor, they will send to your company the rest of the money less the appropriate service fee for advancing the cash.