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Is factoring for you?

Factoring can apply to any company that creates a business to business debt for their customers.

If you feel that you could benefit from:

  • A large and quick boost in cash flow
  • Reduced capital base requirements
  • Early payment discounts from your suppliers
  • Increased profit margins
  • Less time spent on credit control
  • Improved business credit rating
  • Improved financial statements
  • Improved ledger management

Advantages of factoring

1) A large and quick boost to your cash flow

  • With factoring cash can be made available to you within 24 – 48 hours of sending us your invoices
  • A continuing source of working capital, you will get paid earlier, allowing you to:
    a) reduce your capital base requirements
    b) take advantage of early payment discounts to suppliers and increase profit margins.

2) Reduce the time you spend on credit control

The factoring provider takes the responsibility of recovering debt and outstanding invoices, which will free up time to concentrate on your core business.

3) A more responsive alternative to business overdrafts and loans

Factoring is a competitive business and as such it is competitively priced. It’s more than likely that overdrafts, loans and mortgages would cost you more time and money than our factoring fees and are less responsive.

4) Business credit rating is not an issue

Business credit rating is not an issue, you may qualify for factoring even if you are a young company. You may even be able to improve your credit rating and financial statements by using invoice Finance.

5) Efficient handling of all your invoicing

By choosing a reputable factoring company, the provider very efficient sales ledger for you. The provider will offer a professional service that treats your customers as if they were the providers own.

How factoring works

  • YOU RECEIVE AN ORDER
  • YOU DELIVER THE PRODUCT / SERVICES
  • YOU PRODUCE THE INVOICE AND SEND A COPY TO THE FACTORING PROVIDER
  • IF YOU REQUIRE FUNDS, THE FACTORING PROVIDER WILL TRANSFER THEM ELECTRONICALLY INTO YOUR ACCOUNT
  • THE FACTORING PROVIDER WILL SEND OUT STATEMENTS TO YOUR CUSTOMERS
  • THE FACTORING PROVIDER COLLECTS PAYMENT FROM YOUR CUSTOMERS
  • THE FACTORING PROVIDER PAY YOU THE BALANCE MINUS AN AGREED FEE

    In its simplest form, factoring involves selling your invoices to us, in return we administer them for you and allow you to draw down funds against their value.