Invoice Factoring Information

Invoice Factoring Information
Knowledge is power

Cash flow is the lifeblood of any business and there are times when they need a helping hand. Dealing with other businesses can often lead to a delay between completing the work, issuing the invoice, and then being paid. This means that your business lacks access to the money that has already been earned. Invoice factoring could offer the perfect solution.

How Invoice factoring will help you

Has your business been there? You have issued an invoice to another company yet two months or more down the line, you are still awaiting payment. You’ve dealt with this company before and you know that they will pay. The problem is that you just don’t know when. In the meantime, you have your own suppliers to pay. You may also have plans to expand and need to access your cash or perhaps you are being left short when it comes to covering wages for your staff. Invoice factoring puts an end to all of this.

We hope that you can see the benefits that invoice factoring could bring to your business. If you need to know anymore, then here are the key points to consider:

You unlock 95% of your invoice value

Your cash flow sees an immediate improvement

Funds are with you within 24 hours rather than weeks or months later

You no longer need to chase outstanding payments

With invoice factoring, you are effectively selling your invoice to another company. This company will pay you 95% of the invoice value and they then take on the role of credit control. The invoice factoring company will be responsible for recovering payment for the invoice while you have already received payment.

Invoice factoring really is the perfect solution for businesses who are frustrated with seeing their money tied up. This solution allows you to take control of your cash flow, no longer are you reliant on other businesses. Why not get in touch so that we can show you exactly how your business could benefit?

Are there any restrictions when it comes to invoice factoring?

Invoice factoring is a great solution to aid your cash flow. Given the nature of this product, it is only suitable for B2B businesses. It is not a solution for B2C where companies are dealing with payments from members of the public.

Is my business eligible for invoice factoring?

To be eligible for invoice factoring you need to meet the following criteria:

Have been trading for at least 4 months
Have a turnover of at least £100,000
Have a UK bank account
Have a business that is registered in the UK

How quickly will I receive funds?

Invoice factoring improves your cash flow because you are no longer waiting weeks or months for payments to reach you. By taking advantage of invoice factoring you could see 95% of the invoice value reaching you within 24 hours.

Can I receive more than 95% of the invoice value?

Invoice factoring companies charge a fee for their services. This is why you do not receive 100% of the invoice value. Typically fees will be between 1%-5% with the latter being the most popular.