A factoring company will free the funds
locked up in a business’s unpaid domestic and overseas sales
invoices. They can advance typically up to 90 per cent of the value
of the unpaid invoices (less a small service fee) within 24 hours
of your raising them. The balance is available, when the customer
settles their outstanding debt. A sales ledger and credit management
service is provided as part of the service. A good factor will work
with their client to collect their invoice payments and ensure that
good customer relationships are maintained.
Export invoices can be funded in either sterling or local currency.
Multi-lingual credit controllers are on hand to minimise payment
Factoring is suitable for businesses ranging from start up to maturity,
providing goods or services on credit terms to other businesses.
Factoring can bring savings for you and your business. The ability
to access cash against your unpaid sales invoices can save you time
from chasing customers who do not pay until they are ready. The
factor will send statements and reminder notices, once again saving
valuable administrative resources, leaving staff free perhaps to
research new customers. A credit vetting service is also on offer,
to ensure all your hard work courting these new businesses are not
wasted through bad debts.
How many times has your bank manager called, concerned
about a growing overdraft?
With factoring the rigidities of traditional funding are removed,
the funding grows with you, leaving you free to take advantage of
business opportunities – which often need cash, which would
be available to you. This will save you from external pressures,
which need not interfere with the day to day running of your business.