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Factoring is a facility that
provides funding / cashflow that is locked in your Sales ledger.
Factoring provides an immediate injection of capital
into the business and is an on going source of funding.
Factoring is often used by
small to medium sized businesses as the facility grows with
the business. The factoring company manages the Sales Ledger
so leaving you to concentrate on your business without the
distractions of debt collection.
It is possible to raise up to 90% of your
invoices and is usually available in 24 hours.
- You send your invoices to your customer for work completed.
- You send copy invoices to your Factoring Company.
- Factoring Company pays you up to 90%
of your invoices in 24 Hours.
- Factoring Company collects payment from
your customer and manages your Sales Ledger.
- Factoring Company pays you the balance
less charges
There are 2 types of Fees :-
- Cost of money – that you use, which
can be very cost effective when compared to other forms
of finance. The interest rate on amount advanced is usually
competitive with the interest charged by banks on overdrafts
-generally 1.0% - 3.5% above bank base rate.
- Service fee – this is prearranged
and is usually related to the turnover of the business usually
0.5% - 3.5% of turnover.
Factoring is suitable for business that are:
- Start – Ups
- Small to medium sized businesses
- Sole traders, Partnerships and Limited Companies
- Businesses with poor trading history
- Phoenix Businesses
- Contractual
- Management Buy-Outs / Management Buy- Ins
Please call freephone
0800 915 3325
to discuss any of your company's financial needs, we can provide
you with a factoring company that will get your company's
finances in order.
Index
| Factoring
& Factoring Companies |
Invoice Discounting
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