FREE OFFER - for a free appraisal as to whether your business might benefit from factoring or invoice discounting, contact us today
Invoice Factor
Would you like to improve your cash flow?
We have a wide knowledge of the marketplace knowing who is hungry for business and who are specialists in certain industries.
Our invoice factor broker service will put you in direct contact with UK factors and invoice discounters who may be able to assist your business.
And the service is free of charge.
What is invoice factoring?
Also known as debtor finance this tool can assist start-ups as well as established businesses by dramatically improving your cash flow by releasing money as soon as an order has been completed an order and an invoice raised rather than having to wait 30, 60 or 90 days for your customers to pay.
Typically, when factoring is set up you can borrow up to about 80% of the value of your approved invoices less than 90-120 days old. Thereafter, cash will be made available against invoices on a daily basis with the remaining 20%, less charges, once the value of the invoice has been collected. Once the system is established, the level of advance you receive against invoices depends on a number of issues, but can rise as high as 100%. Once in place, there is no limit to the amount you can borrow as the finance is linked directly to sales. This is in sharp contrast to bank overdrafts, which require regular re-negotiation and arrangement fees.
The cost of such a facility is normally up to 3% over base rate for the money borrowed together with a service charge linked to gross turnover of at least 0.5% depending upon the level of annual sales, the number invoices raised and how many live accounts are on the sales ledger. Small addition charges are often made for extra services such as credit insurance.
We can offer you a free appraisal as to whether your business might benefit from factoring or invoice discounting, for more details contact us on 0845 8380936.
