INVOICE FACTORING | FAQs

Invoice Factoring (also known as Debt Factoring or just Factoring) allows your business to release cash against your outstanding customer invoices before they’ve been paid. An added bonus of Invoice Factoring is we will manage your credit control so you can concentrate on growing your business.

Our video gives you a short explanation of how Invoice Factoring works.

 

Invoice Factoring is ideal if your business has customers on long payment terms and/or often pay late. It can also be helpful if you spend more time than you would like managing your customer payments.

Invoice Factoring gives you fast access to cash you’re owed, helping to improve cash flow so you can run your business smoothly and efficiently while building working capital. Because we liaise with your customers for payment, you will have more time to focus on growing your business. Unlike a traditional overdraft or loan, it grows in-line with your turnover making this model of commercial funding a flexible solution for managing your cash flow.

Because Invoice Factoring is secured against your invoices there may not be any need for additional security to obtain funding however, we do carry out our own due-diligence

Every business is different. We'll work with you to make sure the funding you get is exactly what your business needs. This means that the length of time to have everything in place can vary depending on how complex your business situation is. We work flexibly from the point of meeting you to understand your needs. In an ideal world, your facility can be in place in a matter of days, however this also depends on the speed in which we can access the information we need

Like any financial arrangement there is a bit work required at the beginning but after that, any facility arranged will grow as your business grows. After your initial contact with us there will be a confidential discussion with one of our specialists who will get to know your business and arrange a face-to-face meeting with you. Once we understand the requirements of your business, we will provide an indicative offer to you. Following a new business review and consideration by our credit committee, we will then be able to make a credit offer to you. If you choose to work with us we’ll arrange an on-boarding meeting for you after which you can begin sending invoices to us and we can start releasing funds for you to use.

If your client doesn’t pay within the agreed period, also known as the recourse period, usually 90 days, funding will be removed unless protected by debt protection cover. You have the option to protect against customer insolvency with Bad Debt Protection.

Every agreement and facility is different. The cost to your business will depend on your needs and the services you choose to use. If you would like discuss how Invoice Factoring would work for business, request a call-back and one of our specialist team will be in touch.