How does Factoring work?

  • You send out your Invoices and Credit Notes as normal, including an assignment notice, providing a copy by post or electronically to the Factoring company.
  • The Factor makes available an agreed percentage of the invoice value, up to 120 days old, usually by electronic transfer within 24 hours.
  • The Factoring company sends out the monthly statements and ensures payment is received on time, having agreed a credit control strategy with you beforehand. This allows you to chase up some of your larger/more important customers yourself, ensuring goodwill is maintained with them whilst still collecting the money in a timely manner.
  • Your customers send their payments to the Factor who, in turn, then credits you with the balance due i.e. less the initial payment and their charges.
  • The Sales Ledger is updated on a monthly basis by the Factoring company and, using the latest internet technology you can have immediate and real time access to all your account details.
  • Regular Management Reports are provided by the Factoring Company, giving details of the Sales Ledger and your account with them.
  • Typically, an Assignment Notice is pre-printed on to each Invoice which you send out, in most cases the Factor can provide a supply of stickers to use initially if necessary.

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Our Partners

RBS
Bibby Financial Services
Skipton Business Finance
Metro Bank
Close Brothers Invoice Finance
Ultimate Finance Group
Ashley Business Finance
Shawbrook Business Credit
Factor 21
Working Capital Partners
Catalyst Finance
Market Invoice
Platform Black