Every business experiences a lag time between sending out an invoice and getting paid. Some customers may pay on 30 day terms, but others may wait 60 or even 90 days before they settle any invoices.
Factoring can reduce that payment delay significantly and provide your business with a positive cashflow boost. It can free up working capital, enabling you to enjoy more financial headroom and the flexibility to grow your business.
Factoring - How does it work?
Our Factoring clients outsource their invoicing and sales ledger to us; so we handle their customers courteously and professionally, but we also protect their business needs.
Once an invoice has been raised, our clients typically receive up to 90% of its value within 24 hours, with the balance being released later, less our service fee. We also build a degree of credit management into the facility.
By allowing us to tackle tasks like collecting payment and ensuring cashflow, our clients can focus on their more profitable and positive responsibilities, like securing new business to grow their business.
Is Factoring right for my business?
If you are a growing business or a start-up that trades on credit terms and have an annual turnover in excess of £50,000, then Factoring is an Invoice Finance option worth considering.
Factoring has two advantages over other financial lending options. Firstly, you don't need any other assets beyond the value of your invoices to secure the funding; and secondly, Factoring is flexible because your working capital grows in line with your sales.
This flexibility means that companies have the cashflow and capital on hand to fund growth at a time that suits their business needs, rather than being constrained by unpaid invoices.
We value good customer service
If you would like to work with a Factoring partner who focuses on customer service, then you should consider working with us; but don't just take our word for it, listen to what our customers have to say...
Our goal is to retain your business by doing our job well; we want to earn your trust on merit, not because of a contractual obligation. That's why we invite you to try our Factoring service for 6 months; if you're not completely satisfied, you can give us 28 days' notice for a full refund of fees*. Our Business Charter outlines the full commitment we make to our clients.
Contact us to discuss your options
Factoring is just one of the Invoice Financing solutions that we offer; if you have a larger business (with a turnover in excess of £250,000) then Invoice Discounting could be a more suitable product.
Call 0800 169 4356 to learn more about Factoring, or to discuss the other business funding options we have available.
*Terms & Conditions apply - Read our Business Charter
The provision of credit or leasing services by us is subject to your meeting our Credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.