Invoice Factoring
Factoring is one of the best solutions to a companies cash flow problems.
Factoring gives you an immediate cash injection against the value of outstanding invoices, then an advance of up to 90% of the value of an invoice as it is raised (This can be up to 100% in certain circumstances). The balance, less fees payable to the service provider, becomes available when the customer pays the invoice. Unpaid invoices become assets which are turned into cash. With Factoring more funds are available to you immediately as your business grows. Funding levels grow with turnover - ideal for a growing business.
Factoring is well suited to small and medium sized businesses with a turnover above £50k who are selling goods and services on credit to other businesses. Factoring is also available for new start businesses.
Credit control & sales ledger management is undertaken by the service provider, which generally costs less than doing it in-house and generally leads to improved collection performance, reduced risk of bad debts and reduced debtor days giving more predictability & ultimately stability.
Remember that the factor is as interested in keeping your customers happy as you are, so they are very professional, diplomatic and effective. Detailed accounts of transactions are available to you from the factoring company. If required you can maintain some element of control via close interaction with the credit control team.
The cost of a facility includes a service charge plus the cost of money borrowed (i.e. interest).
Recourse (excludes bad debt protection) & non-recourse (includes bad debt protection) facilities can be arranged, with no minimum contract term.
Positive Invoice Finance can help find the best Invoice Finance facility for your company (either Factoring or Invoice Discounting)- Click Here For A Free Quote
We will go to market and find the best deal fo you and your company, giving you the time to do what you do best - run your company!
When you use Positive Invoice Finance as your broker you will not pay any more than you would if you went direct to the funder/ provider - in fact you will pay less due to the volume of business we introduce them!
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Recourse or Non Recourse Factoring
Factoring facilities can be provided as either Recourse or Non Recourse.
Recourse is where the debt is not insured and if your customer does not pay, you or your company will be liable for the debt.
Non Recourse Factoring includes Bad Debt Proctection. With a Bad Debt Protection policy attached to your Factoring facility you have extra comfort in these difficult trading times. If one of your customer goes bust or does not pay you will not have to pay back the funds you borrowed from the funder against this customers invoices as the debt is insured.
Factoring Facilities can offer other bolt-on services such as Asset Finance, Bridging Finance, Back Office Services and so on. More details can be found at Additional Services
Factoring FAQs
Will Factoring or Invoice Discounting upset my customers?
A factoring or invoice discounting company needs to keep you and your customers happy. A factoring or invoice discounting company will work with you and not against you.
How much will factoring or invoice discounting cost?
Please call us and we will get you a quote from 3 different factoring or invoice discounting companies. We know the best factoring or invoice discounting providers for your industry.
Will I have to change my bank accounts with a factoring or invoice discounting facility?
No, you do not have to change your bank accounts with a factoring or invoice discounting facility.
How long will it take for a factoring/ invoice discounting facility to be set up?
A factoring or invoice discounting facility can be set up within 2 working days.
What will my customers think if I use factoring or invoice discounting?
If you use a confidential invoice discounting facility your customers will never know. Factoring itself is becoming more and more common and is preferred to an overdraft by many.
More FAQs Available Here
Factoring Case Studies
Specialist Distributor - Factoring and Trade Finance
After the client became frustrated with the inflexible attitude of his exisitng bankers, a change in the way his business was financed became inevitable. The bankers would only provide an overdraft facility which was expensive. With the new Factoring facility, cash-flow is now easier to manage and the factor provided invaluable assistance along the way
Recruitment Business - Factoring and support services
A recruitment company in manchester was recently provided with a full factoring service coupled with back office services such as payroll services - thus allowing the start up business owner to push his business forward
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A funder that specialises in customer service and commitment to clients was introduced and a new facility was implemented within 2 days.
More Case Studies Available Here
