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Factoring
Factoring has become an increasingly important “must have” facility for any invoice-raising business. Its prevalence has increased exponentially for the last 2 decades and has provided a godsend for any business suffering from cash-flow problems. It is the only financial instrument enjoying growth in this financially impaired market.
Debtors are rarely in a hurry to pay and that can interrupt trading in all sorts of ways. Factoring allows businesses to enjoy payment in advance secured against a debt ledger at much more favourable and flexible terms than a bank overdraft.
We are all aware of the banks’ reluctance to provide overdraft and credit facilities in this climate, and this has inevitably brought factoring into its own!
Factoring is also the perfect vehicle to reduce or pay off difficult and irksome business overdrafts !
Please note our bullet points below illustrating the benefits available to your business clients through factoring.
In straitened times, this may just be what your business clients are looking for!
- Financial markets are retracting but Factoring is a unique growth area
- Excellent cash-flow solution for invoice raising companies
- No need to wait for payment on an invoice
- Advances up to 85% of value of debt ledger
- Rates rarely more than 2% above bank base rates
- Draw down funds against debt ledger at anytime
- Far more flexible than overdrafts
- Debt collection part of the service and sensitively dealt with
- Department of Trade and Industry think at least 250,000 companies should be using factoring.
- Ideal for companies with turnovers between £200,000.00 and £20,million.
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