Factoring Services
If your business needs to increase its cash-flow in order to maintain an efficient day-to-day operation, factoring services could be the answer.
Factoring is a flexible form of finance which grows in relation to the sales a company makes, advancing funds every time an invoice is issued.
By providing a percentage of the value of each invoice, the factor company provides extra cash-flow that will increase in line with the needs of the business.
This is the key advantage factoring services have over traditional methods of finance such as overdrafts or loans, which allow access to a limited amount of money.
Who uses factoring services?
Any business with unpaid invoices, finding that the effect these have on their cash-flow is hampering their expansion plans, damaging relationships with suppliers or their ability to cover operating costs may want to consider factoring.
Services provided by most factoring companies will also include credit management, which can avoid diverting much needed resources to chase payments, and put them to better use generating new business.
Should your company require the purchase of raw materials from a supplier to complete customer orders, generally a supplier will need paying before a customer settles their invoice, so it's very difficult to take advantage of potential big opportunities.
By using factoring services your business can confidently make larger volume sales as you know as soon as you issue the invoice, you'll receive the funds required to settle your supplier bills.
If you're looking for a fast and flexible factoring service to fund your expansion plans or that next big order Lloyds TSB provides up to 90% of the invoice value, usually within 24 hours.
Get an instant online quote for our factoring services.
Lloyds TSB Commercial Finance Factoring Guide
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- Business Factoring
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- Factoring Services
- When to use factoring companies
- Invoice Management
- Factoring advantages and considerations
- Factoring for internal growth
- Loans, Overdrafts or Factoring
