What is recourse factoring?
Recourse factoring allows businesses to access working capital tied up in invoices by releasing up to 90% of the sales ledger value within 24 hours to boost cash flow.
As the most basic type of factoring solution, recourse factoring releases cash against your sales ledger for a recourse period of 120 days typically, although this can be as long as 150 days, during which the factoring company will also perform your sales ledger management.
What are the benefits of recourse factoring?
- Recourse factoring is a highly flexible form of business finance as the level of funding grows directly in line with your sales ledger.
- The factoring company will advance up to 90% of the sales ledger value within 24 hours.
- Recourse factoring can include a dedicated sales ledger management service.
- The working capital released by recourse factoring enables you to pay your suppliers before your customers pay you, potentially allowing you to benefit from early settlement discounts.
Is my business suitable for recourse factoring?
As the UK’s leading independent factoring broker, Hilton-Baird’s knowledge of the factoring market will help us to identify the most suitable finance solution for your business whilst ensuring you access the right level of service from your chosen provider.
Call 0800 9774833 to speak to our team of funding consultants or get a factoring quote and find out more about how recourse factoring can boost your cash flow.
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