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Cash Flow Management

The solution for Owner managed businesses?

Whilst not a new financing form, factoring can play a huge part in the success of a business.


Simply because strong cash flow is the main element of business longevity. Its acceptance has grown over the years since its introduction to the UK in the 1960’s, and is now rivaling traditional forms of funding such as the overdraft. This sway in popularity is likely to continue following recent legislation such as the Brumark case (which called into question the bank’s reliance on debenture based lending for their overdraft facilities).

Factoring can assist businesses through what is often their fastest growth phase -start-up - ensuring cash is available to meet expected and unexpected calls on liquidity. Once established, the ongoing provision of predictable cash flow can ensure that opportunities are grasped as they arise, and business plans are brought to fruition.

So how does it work?

Factoring releases up to 90% of the value of unpaid sales invoices within 24 hours of them being raised. The remaining balance is then made available when customers settle their outstanding invoices.

Additionally start up, young, and maturing businesses often have limited resources. A certain element of credit management is built in to a factoring agreement releasing valuable time for key decision-makers to source new business and adds to the bottom line. Statements and reminder notices will be sent to customers reminding them of outstanding debts, telephone chasing is also included, discussed and tailored to individual requirements at the outset.

A credit vetting facility is also available, providing a valuable insight into a customer’s worth, prior to trading with them. This opinion can help avoid the heartache of a bad debt, which if relating to a large customer, could also lead to business failure.

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welcome to factoring
introduction to factoring
factoring - enquiry form
factoring - the facts
how does factoring work?
how does invoice discounting vary from factoring?
how does invoice financing work?
possible disadvantages of factoring
improve your business cash flow
why factoring?
how do I set up a facility?
the solution for owner managed businesses?
is factoring for you?
are your clients credit worthy?
how to reduce business risk
effective debt collection
what if your clients will not pay?
the iva procedure
why you should pay your invoices on time
what is trade credit insurance?
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