Factoring

Factoring: is a service that also provides businesses with instant cash of up to a maximum of 80% of the value of the company’s debtor ledger.

The Factoring Company will be responsible for the Debt Collection elements of the business which can ease management and relieve administration.

Factoring is mostly suitable for companies that have a turnover of over £80k.

If you have any queries on our Factoring & Invoice Discounting service then please contact us

Our Approach to Factoring

Factoring offers most businesses an added advantage in raising funds or general cash flow assistance by providing cash against unpaid invoices. Due to the innovative way that borrowed money is secured, a factoring company frequently allows businesses to borrow larger amounts of money compared to more traditional forms of commercial finance such as bank overdrafts.

With our factoringsolution, you will receive advances of funds against outstanding sales invoices. You inform the factoring company electronically or by post that you have issued an invoice. Up to 90% of the value of your invoices can be paid out within 24 hours of raising them. The balance is made available when your customers settle their outstanding debts.

The factoring service can also improve credit management releasing valuable time for your business. Having agreed procedures with you, statements and reminder notices would be sent to customers reminding them of outstanding debts. You will remain in control of your customer relationships at all times Factoring normally works as follows:

Step 1

You perform the service or provide goods as agreed with your client and notify the factoring company of the invoice value.

Step 2

The factoring company pay into your bank account up to 80% of the value of the invoice as quickly as 24 hours later.

Step 3

A Credit controller from the factoring company will contact your debtors to collect outstanding balances.

Step 4

The factoring company pay you the balance of the invoice value having deducted any fees.

There are many ways in which a factoring agreement can be managed and we would be happy to discuss your specific requirements

Why factor? Ask yourself - how could you improve your business?

  • Expand current operations
  • Upgrade plant and machinery
  • Employ extra staff to seek out and fulfil new orders
  • Increase sales and marketing efforts
  • Develop new products
  • Take advantage of supplier discounts by paying early.

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