How does invoice factoring work?
Watch the short animated video below for a simple overview to find out more about what invoice factoring is and how it could benefit your business.
Transcript
Factoring unlocks the funds tied up in your unpaid invoices and is one of the fastest growing business finance solutions in the UK.
It gives you up to 90% of the value of your invoice on the day it’s issued and allows you to fully outsource your sales ledger management and credit control function, saving you time and money.
It can also help with day to day issues such as buying stock or paying wages as well as helping to avoid awkward situations with customers who owe payment from previous orders, but who you still wish to sell to.
The concept is simple. Once you have raised the invoice, we pay up to 90% of the invoiced value then we collect the amount owed using a friendly and professional credit control team before giving you the balance, less an agreed fee.
Unlike with other traditional forms of finance, factoring enables you to access cash that grows in line with your turnover, not your credit rating, which gives you greater flexibility and means you can focus on growing your business.
