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Cash4Business > Invoice Factoring

No more cash flow or credit control headaches with invoice factoring finance...

  • Release up to 90% of outstanding invoices within 24 hours

  • Run your business without chasing customer payment

  • Free-up working capital to grow your business

Do you own or run an expanding business? Are you looking for capital to realise your potential or ease pressure on cashflow?

Invoice Factoring could be the answer to your cashflow and sales management headaches. Its a fast and flexible way to release money from your sales ledger which would normally take 1-3 months to be paid.

Booming stationery business releases £100,000 after factoring deal...

invoice factoring case studyA new business start-up specialising in commercial stationery was unable to obtain an increased business overdraft and funds where invested in heavy start-up costs. Turnover was "going through the roof" but debtor payments had increased to an average of 60 days. The Directors had put more emphasis on sales rather than worrying about getting paid.

We negotiated a factoring facility with 85% of the current sales ledger raising £100,000 in cash immediately, and a further 85% of each future invoice raised. This resulted in the business being able to meet all current and future business commitments with effective cash-flow.


Free-up working capital and improve cashflow...

The biggest asset of most businesses is its trade debtors. Using an invoice factoring service you can release up to 90% of the invoice value within 24 hours of it being raised.

Typically, you will issue your invoices as normal providing a copy to the factoring company who will then advance a percentage of the invoice value to you (usually 80%-90%).

The factoring company issues monthly statements to your customers when invoices become due and ensures payment is received on time. Customers send their payments to the factoring company who pay the balance of the invoice value to you, less their facility fee, and update the sales ledger on a monthly basis.

Spice business continues to supply supermarkets thanks to factoring...

factoring case studyPeter and Sarah Mitchum started their herbs and spice business in February 2001. Customers range from health food shops to supermarkets that demand flexible trading terms.

A suitable factoring facility was completed within five working days which freed up cashflow and allowed them to maintain flexible trading terms with customers. Peter and Sarah now receive up to 80% of the value of outstanding invoices within 24 hours.

Director Peter Mitchum said: "Invoice factoring has helped us to be more flexible with our customers. Without it, we would not have been able to take on supermarket customers."


Reduce sales ledger administration and focus on growth...

Unlike traditional Invoice Finance, Factoring provides a total sales ledger management service.

This means that cashflow is maintained whilst allowing you to spend more time servicing your customers and building long-term, profitable relationships.

Having agreed a sales ledger strategy with you, the factoring company will contact your customers for payment and chase unpaid invoices. This can be a huge benefit for smaller businesses who have fewer resources and need to spend more time running the business and generating revenue.

Franchise enjoys improved cash flow and freedom from credit control...

invoice factoring finance case studyPaul Meehan set up a franchise in March 2000 to provide specialist cleaning services to the construction industry. Paul wanted to improve cash flow in order to better manage the time between paying staff wages and receiving customer payments.

The flexibility of an invoice factoring facility now allows Paul to meet all his financial commitments when required. Paul can access 90% of the value of unpaid sales invoices within 24 hours of raising them, with the balance made available when customers pay.

The factoring company also provides full credit control services, sending out customer statements and contacting customers for payment by telephone, helping free management time.


Top five questions about invoice factoring...

If you have a question about Invoice factoring that is not answered here, please call us on 01246 414413 or complete the enquiry form on the contact us page.

  1. Is there any control over how my customers are contacted for payment?
    This is a common concern and one that the Factors are fully aware of. You maintain full control of your sales and payment policy and the factoring company will work with you to agree a management strategy that suits you both. In all instances, the system is flexible and involves regular feedback to you.

  2. How quickly can funds be advanced?
    When you issue an invoice you notify the factoring company via phone, fax or an internet management system. Many factoring providers can pay advances within 24 hours but may charge additional fees for this speed. If funds are not required that fast it may be cheaper to select payment within 48 hours and avoid extra fees.

  3. How much does an Invoice Factoring facility cost?
    Factoring charges are typically divided into two types known as a service charge and interest charge. Service charges are deducted from  each invoice prior to the balance being paid to you. Rates for factoring facilities are between 0.4 to 0.9%. The interest charge is made on the money borrowed against each invoice and is deducted when an invoice is paid. Rates are comparable, if not lower, than overdraft APR charges.

  4. Is my business suitable for Invoice Factoring?
    Businesses that sell goods or services to other businesses on credit terms and have a turnover of at least £50,000 per annum are most suited to Invoice Factoring.

  5. Are there any fee's to pay?
    Other than the charges made by the factoring company, there are no additional costs. We do not charge any fee's for our service as finance brokers.


Contact us for free invoice factoring advice without obligation...

As a specialist invoice and factoring broker, we know that not all providers deliver on their promises of a fast and efficient service.

If you've found it difficult to secure invoice factoring to suit your needs, have been turned down by your bank or had credit problems - call Cash4Business on 01246 414413 or complete the form below without cost or obligation.

  • Better cashflow

  • More time to grow your business

  • Fast and flexible facilities

 

Submit your priority invoice factoring enquiry here...

Please complete the form below and an adviser will contact you to discuss your invoice factoring needs within 24 hours without cost or obligation. Your details will only be used to contact you about your finance enquiry and are protected by the Data Protection Act.

Your Name *
Company Name *
Your Email *
Telephone
Type of Business
Age of Business
Business Turnover
Average Sale Value
Number of Monthly Invoices
Please Describe Your Requirements

Thank you for your interest in invoice factoring.


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