What is non-recourse factoring?
Just like other invoice finance solutions, non-recourse factoring releases cash against your invoices within 24 hours of issue, providing working capital that can be invested on satisfying your day-to-day cash flow requirements.
Whilst additionally providing a dedicated sales ledger management service, it differs from recourse factoring through the bad debt protection that’s incorporated into the facility to safeguard your business against late payment of debts or debtor insolvency.
Depending on your business’ individual cash flow requirements, non-recourse factoring facilities can be tailored to maximise the level of funding and service provided.
What are the benefits of non-recourse factoring?
- Non-recourse factoring typically releases up to 90% of the invoice’s value to boost your cash flow.
- The non-recourse element of factoring invoices eliminates the risk of debtor non-payment through protracted default (non-payment of debts after six months) or insolvency by transferring the risk to the factoring company.
- The factoring company will additionally credit check both your existing and prospective customers on your behalf to reduce the likelihood of late payment.
- Outsourced sales ledger management and credit control functions will provide you with the necessary time and resource to concentrate on your core business
Is my business suitable for non-recourse factoring?
The majority of businesses are eligible for non-recourse factoring solutions, but it’s important to select the facility from the factoring company that offers the right level of service to your business at the right cost.
Specialising in factoring and invoice finance, Hilton-Baird can assess your company’s cash flow requirements and identify the right factoring solution as the leading factoring broker in the UK.
To find out more about how non-recourse factoring can boost your business’ cash flow whilst safeguarding your business against late payment of debts, please call one of our funding consultants on 0800 9774833 or get an instant factoring quote.
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