With factoring, you issue your invoices as normal; we manage the issuing of statements and collect the monies owed to you.
Who is factoring for?
Factoring is primarily for smaller businesses who do not have a large finance department and who may have customers who don't always pay on time. We, in effect, become your credit control service. We advance up to 90% of the value of your invoices. We then collect the payments from your customers and once received pass on the remaining balance of the invoice less our service charge.
Factoring is a particularly strong option if you're a smaller business, usually with turnover starting from £250k and up to £2m, and you don't have the time to chase up unpaid invoices. Plus, conversations over unpaid invoices can be awkward: with factoring, we take care of such conversations, allowing you to focus on customer relationships and the sourcing of new orders. Factoring allows you to use your time and resources in a more efficient way: we chase the invoices on your behalf, leaving you to move your business forward in whatever way you see fit - without the nagging thought at the back of your mind that you're not getting what is owed to you. Furthermore, we can give you a cash injection of up to 90% of your unpaid invoices.
How can we do this?
We have the people and the systems in place to make the collecting of invoices a relatively easy process - certainly much easier than it is for a great many smaller businesses. We make our money by charging you a percentage of the turnover you put through the facility. This percentage is subject to change: please refer to pricing
for a more detailed explanation. You receive the remaining percentage of every invoice you issue. However, you do not have to wait around for those invoices to be paid - or hope that they will be paid at all.
Why factoring could work for you
When you become our client with factoring you can receive up to 90% of the value of an invoice within 24 hours of issue (the rest - less our charge - is paid on settlement of the invoice), so you can put your money to work immediately. Factoring allows you to address your long- and mid-term business plans, safe in the knowledge that your sums are not awry: you know exactly what is coming in, which is both a major relief and a strong platform for you to plan for the future.
See our lending guides for more information on how to obtain funding.
Security may be required. Product fees may apply.