What is a Factoring?

Does your company struggle with cash flow problems while waiting for payment from your customers?

Did you know that factoring provides a cash flow facility for any invoice-raising business and can provide a solution for any business suffering from cash-flow problems?

As you may have experienced, debtors are rarely in a hurry to pay and that can interrupt trading in all sorts of ways. Factoring (often referred to as Invoice Discounting) allows businesses to enjoy payment in advance secured against a debt ledger, often at much more favourable and flexible terms than a bank overdraft.

Benefits of factoring

• Improved cash-flow solution for businesses who raise invoices
• No need to wait for payment on invoices issued
• Draw down funds against debt ledger at anytime
• Can prove to be more flexible than an overdraft facility
• Payment collection can be provided as part of the service
• New clients can be checked for creditworthiness