Factoring

Why factor?

Factoring is a flexible form of finance, which advances money to a company as and when it issues new invoices.

Factoring can bridge the gap between raising an invoice and getting that invoice paid.

Factoring provides the cash flow necessary for working capital and growth.

There are two major advantages of factoring over overdrafts or other forms of personal or business loans, these are:

• Factoring is flexible in that the amount you can borrow grows directly with your sales. This is essential to enable companies to fund their growth, since you must usually pay your suppliers before you receive payments from your customers.
• No other assets are needed to secure this funding.

How does it work?

When you send out your invoices we can arrange for advance funds of up to 95% to be released normally within 24 hours.

Some degree of credit management can also be built into the facility. We currently assist businesses of all sizes including sole traders and limited companies from start-up to maturity.

What can factoring do for your business?

Whether you are a new start business or you're enjoying healthy growth and increasing sales, or you're considering expansion, unpaid invoices can really constrain your business.

If you are thinking about expanding, the last thing you need is unreliable cash flow. This is where the right factoring provider can help you.

It's a fact of business that many customers delay settling invoices for as long as possible. In many cases you may have to wait 60 days or longer before invoices are settled. This all adds up to bad news when you still need to pay your staff and suppliers on time.

Without the right amount of cash flow when you need it, you may well have to divert precious resources to chasing payment when you should be chasing new business.