Invoice Factoring
Invoice Discounting
Business Financing
Brumark
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Business Financing
Other business financing services provided by factoring companies
In addition to normal invoice factoring most factoring companies provide additional business financing packages. Nationwide Asset Finance Limited has the expertise to advise you on which business financing services most suit your company's needs.
Single Invoice / Selective Factoring
This option is ideal for companies dealing with large single orders or peak seasonal trading conditions. You simply nominate the invoice or invoices you want to factor or the individual debtor(s) you want to factor.
This service is provided by very few factoring companies. Advance levels vary from 80% to 95% of invoice value and the costs are higher than a standard factoring facility at 1% to 5% depending on the size of the invoice. The minimum invoice value is £1,000
Export Factoring
A number of factoring companies specialise in this area and have in-house multi-lingual teams and a worldwide network of associated companies enabling them to offer a complete export service. This saves valuable management time in dealing with different time zones, cultures and legal systems enabling you to avoid unnecessary obstacles and keep overseas transactions moving quickly.
All you have to do is send copies of your sales invoices and credit notes to the factor by post or electronically. An initial advance of 90% is made with the balance on receipt of payment from your customer. The factor collects payments, prepares and sends out statements and keeps detailed accounts of all transactions.
Most export factors do not insist on handling the domestic sales ledger as well. With banks reluctant to advance against export debtors, this service can increase total funding without affecting other credit facilities. Export factors usually insist on all debts being insured, which will add ½% to the service charge. Expect to pay 1% to 2% of turnover and interest charges of 2% to 3½% over base.
Agency Factoring
Factoring companies understand that many clients are perfectly capable of running their own sales ledger management. Allowing clients to be responsible for collecting their own debts reduces the costs of factoring significantly whilst retaining all the financial benefits of immediate cash against invoices.
Sales Ledger Management
This is the opposite of agency factoring. Many companies do not have a problem with cash flow but instead want to take advantage of the skilled personnel required for efficient sales ledger management and debt collection provided by factoring companies coupled with savings in administration costs and extra personnel. Credit protection can also be included.
Trade Finance
You have a confirmed order from a credit worthy customer but lack the cash to fulfil it. Trade financiers specialise in helping companies achieve the growth that is so often in their potential but beyond the scope of traditional financiers i.e. banks.
By paying your supplier direct or opening a letter of credit the trade financier can fund 80% to 100% of the cost of goods plus duty and Vat. Trade finance facilities are complimentary to your existing funding arrangements and enable you to take on additional business, which would otherwise be lost.
Stock Purchase
Stock Purchase enables companies to finance stock-building against confirmed customer orders and is ideally suited for businesses with seasonal fluctuations.
A Stock Purchase facility enables prompt payment to be made to suppliers during the build up to the sales season, and supported by a factoring facility incorporates funding right through to ultimate payment by the customer.
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