Business Factoring Service

Factoring & Sales Ledger Management

A common feature of growing businesses is their demand for cash. They have profitable and completed invoiced orders which are unpaid, putting severe pressure on the cash flow of the business and restrict the ability of the business to expand.

Our Business factoring service offers invoice discounting and trade finance and injects much needed cash into a business.

Business Factoring Service

The factoring company normally pays you between 75 – 90% of the value of outstanding invoices, providing an immediate cash injection to the business. Then, as a matter of procedure, you send a copy of the customer invoices as they are raised, to the factoring company who pay you 75 – 90% of the value, normally within 24 hours. The balance of the funds, less fees is released by the factoring company when the customer pays. This is normally an ongoing service for businesses with an annual turnover exceeding £50,000.

Invoice Discounting

Invoice Discounting is a one off service normally only offered to businesses with a turnover exceeding £1 million. There is a cash injection to the business, normally within 24 hours of 75 – 90% of the value of outstanding invoices, with the balance, less fees released once customer payment is received. Normally the company rather than the finance provider is responsible for chasing customer payment.

Trade Finance

Trade finance can be provided to support ongoing trade with a customer in circumstances where there are insufficient funds. It can be arranged to fund the purchase of raw materials or accessible components to fulfil an order. An immediate cash injection can be arranged by invoicing the trade finance provider who in turn invoices the end customer.

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Website by Web Man Walking and last updated 20 August 2008.