The
invoice factoring company
Invoice factoring is used by many company's
to improve cashflow and can be used to reduce administration
costs. Company's that suppy these services are called a invoice
factoring company.
We understand the challenges facing todays
businesses, chasing money, raising invoices and managing
cash flow. By using an invoice factoring company you can
stop worring about all the above and consentrate on running
your business.
Why use an Invoice Factoring company.
Using a invoice factoring company allows
better
working capital, additional sales ledger management
and can financing rapid growth.
Invoice factoring company's can be independent
or subsidiaries of financial institutions or the major banks.
Before you
start
factoring
they will need to meet you to evaluate your business and
review your financial situation to access your suitability
for factoring services.
If it is accepted that your business is suitable and an agreement is put in place, the factor will normaly agree to advance up to 85% of your invoices, with payments made usually within 24 hours.
The cost of factoring and invoice discounting
Invoice factoring is a very competitive
business and with many suppliers it pays to shop around.
You should
make your selection not only on cost but quality of service.
The costs of invoice factoring are split
into two, fees interest charges.
The fees charged will be for credit management and administration services and these will be dependent on your turnover and number of customers you have and the quantity of invoices they process.
The interest charges can vary from around 1.5% to 3 per cent over base rate.
Is Invoice factoring for your company?
There is no hard and fast rule for this, but the biggest advantage of factoring is the boost to your cashflow. For example if your company was owed £900,000 you may be able to get £750,000 or more in a few days.
If you would like a no obligation quote on
invoice factoring services fill in the enquiry form below.
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