Invoice Factoring Companies
 

Companies that
use factoring

Will Factoring suit my business?

Invoice factoring is suitable for most businesses in the manufacturing, business services and distributive trade sectors in the UK selling goods and services to other businesses on normal credit terms.

Ideally you should have a turnover of £100,000 but there are a few factors that will go down to £50,000 per annum. There is no upper limit.

Suitable Companies

No company is excluded, even those making a trading loss or which have a negative net worth. This is because the factoring company's security is primarily your customers (through your invoices) as well as yourself. As a result factoring facilities are available to sole traders, partnerships, limited companies, PLC's, new start-ups and even businesses in an IVA or CVA plus phoenix situations. PAYE and VAT arrears are also not usually a problem.

Just as importantly factoring provides a complete sales ledger management service to those businesses that need it. Many businesses often find they do not have the resources to employ full time credit controllers or collection staff. Factoring overcomes this problem.

Which businesses are not suitable?

The problem areas are:

  • Long term contracts and retentions
  • Stage payments
  • Potential installation disputes
  • Maintenance contracts

Maintenance contracts can usually be overcome by putting them into a separate company and there are specialist trade financiers who might be able to help with the other problem areas. So, do not be put off. If you do not ask the answer is always no.

Companies that use factoring

Companies that use factoringThe number of companies that use factoring is increasing all the time. The following list represents some of the common industry sectors to which invoice factoring is suitable.

  • Ad agencies
  • Agricultural suppliers
  • Builders
  • Business services
  • Car component manufacturers
  • Chemical
  • Computer Suppliers
  • Confectionery
  • Consultants
  • Consulting companies
  • Couriers
  • Dentists
  • Distribution
  • Doctors
  • Electronics
  • Engineers
  • Fashion retailers
  • Food & Drink
  • Foundries
  • Furniture
  • Garden products
  • Giftware
  • Lawyers
  • Logistic services
  • Medical supplies
  • Metal stockholders
  • Packaging
  • Packing
  • Painting contractors
  • Paper merchants
  • Pharmaceuticals
  • Pharmacies
  • Plant Hire
  • Plastic moulding
  • Printers
  • Publishers
  • Recruiters
  • Shop fitters
  • Stationers
  • Stockholders
  • Telecoms
  • Textiles
  • Timber trade
  • Transport
  • Vets
  • Waste disposal
  • Wholesalers

This list is not exhaustive, if your business is not listed please contact us to assess suitability.

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