What is factoring?
Factoring enables businesses of all sizes to overcome the cash flow challenges posed by trading on credit. It involves a factoring company advancing up to 90% of an invoice’s value to you within 24 hours of its issue whilst providing a dedicated sales ledger management service, leaving you the time and resource to meet your day-to-day cash flow commitments.
Time delays associated with trading on credit terms mean that a business must often have to wait up to 90 days to receive payment from customers, resulting in a limited access to working capital, but factoring invoices will overcome this challenge.
What are the benefits of factoring?
- The working capital generated by factoring invoices can be used to secure new business and meet-day-to-day cash flow requirements.
- Factoring can be tailored to suit the needs of your business by incorporating additional services such as bad debt protection, whilst confidential factoring means the factoring company will perform credit control under your business’ name if desired.
- Factoring is secured on your debtors and the quality of the outstanding invoices as security, negating the need for a detailed trading history to make it a highly useful cash flow solution for businesses of all sizes.
Which factoring solution is right for my business?
The majority of businesses that trade on credit terms can benefit from improved cash flow by factoring invoices. Different factoring solutions have been specifically designed to satisfy operational differences, accounting for variances between the individual needs of the range of industries, but a specialist factoring broker can introduce the most suitable facility.
Costs vary between factoring companies and there are a number of variables which affect the charges, such as the size of your sales ledger and the type of factoring facility selected, so it important to contact a specialist factoring broker to source the right solution and funder for you.
Hilton-Baird is the UK’s leading factoring broker and excels at matching individual businesses’ cash flow requirements with the most suitable invoice finance facility.
Get a factoring quote by filling out the above form. Alternatively, email firstname.lastname@example.org or speak to our team of funding consultants on 0800 9774833 to find out more about how factoring debt can boost your cash flow.
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