With invoice factoring, you can release up to 90% of the gross invoice value (depending on what industry you are in). This isn’t just for future invoices, as lenders can also fund your current sales ledger. This means you can have access up to 90% of your total sales outstanding, from day one.
If you already have a factoring facility, just by having a 10-minute conversation can save you up to 30% on your factoring costs. We can also increase funding limits, obtain larger credit limits and perhaps extend the funding period – allowing your business the opportunity to grow efficiently.
Having an invoice factoring facility allows you regular cash flow so you can pay wages, suppliers and other operating expenses on time. If you can pay your suppliers quicker, you can often get a discount which could be greater than the cost of a factoring facility itself.
Improving your businesses cash flow means that you can now take on additional orders that you couldn’t afford to take on previously. All invoice finance facilities are great for growth, as you no longer have to wait to be paid, before you jump onto the next order.
Invoice factoring also includes credit control assistance (if required). This means that you no longer need to chase your own debts, saving you time so you can continue running your business. It’s also very cost efficient for a lender to conduct the credit control, compared to the hiring of staff.
Factoring allows you immediate access to cash that is tied up from unpaid invoices from your customers (debtors). Therefore, you no longer have to wait 30, 60 or even 90 days to get paid. You can have access to cash, the same day you raise an invoice.
With any form of invoice finance, you can also take bad debt protection. This covers you if any of your customers go into liquidation or administration. Depending on your policy, you can can also get protracted default cover if the debt hasn’t been disputed.
All lenders allow you online access so you can see charges, payments and account activity. You will receive log in details when your invoice finance facility becomes live. Training will also be available so you can get the most out of the online features.