Invoice Factoring - What is IF

What is Invoice Factoring?

Build working capital with better cash flow

Invoice Factoring (also known as Debt Factoring or just Factoring) is ideal for businesses like yours who are either facing cash flow challenges or keen to grow, and want a professional team to help with credit control. As an alternative bank loans, overdrafts or credit cards, it can bridge the gap between raising customer invoices and getting paid. At the same time, it can free up your time because we manage your invoicing and collection processes.

If on the other hand you prefer to manage credit control in-house, you should think about using Invoice Discounting.


Invoice Factoring explained

Invoice Factoring allows businesses access to funds against what is often their most significant asset – their debtor book. Supporting clients of all sizes, from start-ups to corporates, it can be particularly useful for small businesses who want to build working capital to grow their business without the burden of fixed-cost lending such as a traditional bank loan.

Download A Guide To Invoice Finance

How does Invoice Factoring work?

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Invoice your customer

Raise your invoice and upload the details using our secure online portal

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Access your funds

Within 24 hours you will be able to access your funds

Contact

We collect on your behalf

We are very discrete, your customer will not know who we are

Payment

We pay you the remainder

Minus our fees as agreed with you in advance


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Can Invoice Factoring help my business?

Designed to help your business grow

If you want to relieve cash flow pressures, access funds tied up in invoices and free your time from chasing late payments, then Invoice Factoring can help. Unlike a traditional bank we are a little more flexible, able to help if:

  • You provide goods and/or services to any other business
  • You give your customers credit terms of between 30 and 90 days
  • You would like to concentrate on your business and are happy for us to manage your credit control

Invoice Factoring key facts

Key features of Invoice Factoring and the benefits you can get working with the UK's leading alternative business finance provider. Bibby Financial Services has been helping businesses grow for over 30 years.

FEATURES

  • We release up to 100% of invoice value within 24 hours
  • You get cash against the value of your invoices as they are raised
  • The fund you can access grows in line with your sales
  • The duration is unlimited on a rolling contract
  • We liaise with your customers for payment
  • You can opt to make process confidential
  • Combine with Bad Debt Protection for total peace of mind
  • Manage your account with our 24/7 Client Online service

BENEFITS

  • Speed: access to cash within 24 hours to meet payments or make important purchases
  • Control: we manage your credit control and sales ledger
  • Personal: we get to know you, as we have many clients who value our relationship-based approach and our Service Promise
  • Convenience: you can check your funding at any time using our 24/7 Client Online service 
  • Security: you can opt to protect against customer insolvency with Bad Debt Protection
  • Confidentiality: opt for confidential service and we will not disclose you are using our service

Other funders pulled out due to volatility in our market but the team at BFS believed in our business and with their support we have returned to being a growing and profitable company. SIMON SHARKEY, Managing Director, YORKSHIRE BUILDING SERVICES

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We help our clients by being discreet

If you do not want your customers to know how you’re funded or if you have reliable collection practices in place and would prefer to keep your credit control function in-house, we can offer a confidential service.

This means we do not tell your customers that you are using a finance facility and you maintain the relationship with your customers, without their knowledge of our involvement. It is always our intention to act in your best interest.

When it comes to your customers paying their invoices, and to keep the process confidential, your customers make payments into a trust bank account in your name even though the funds are paid to us.