How it works

• The main asset within most businesses tends to be the sales ledger. Factoring is a straightfoward way of putting this asset to work for your business in order to relieve cash flow worries and to enable the business to grow and develop. The following shows how our service works:
• You provide goods and services to your client and you invoice them, with instructions to pay the factoring company
• You send the factoring company the Invoice details either electronically or by post.
• The factoring company provide funds, of up to 80% of the invoice value, to you the same working day.
• Your customer pays the factoring company
• The  factoring company provide you with the balance of the invoice value, less our charge.

Factoring has come of age over the last ten years and has become the chosen form of finance and now handles a record £17.2billion to over 17,000 SME’s within the UK who no longer have the worries associated with slow paying customers.

Companies choose to factor for many reasons. The most common amongst these is dissatisfaction with the level of overdraft facility that their bank is willing to provide, combined with the level of security that is often requested.

Factoring is secured against the assets within a business and therefore additional security in the form of charges over the personal property is not required. It is quite common to find businesses which started by using an overdraft that have moved to factoring in order to release personal security, which means that the company becomes self funding and stands on its own two feet.