What are the Benefits of Factoring?

  • An immediate cash flow injection coupled with a borrowing facility which rises automatically as your sales increase ensuring future growth is not restricted. No more cash flow headaches or dreaded calls to the bank. Also, the facility is not normally re-payable on demand, unlike a bank overdraft, thus removing another worry.
  • With better cash flow comes increased bargaining power with suppliers and the potential for prompt payment discounts (more than covering the cost of the service). Conversely, there will be less need to concede discounts to your customers. A double bonus.
  • Considerable savings in administration costs, stationery, bank and telephone charges, staff time, extra office equipment etc. which come from from outsourcing the Sales Ledger Management. In addition, the costs of employing a good Credit Control Clerk which can be anything from £14k to £18k per annum are avoided.
  • Release of the most valuable of resource, time, to concentrate on running and growing your business - free from the shackles of keeping up with back office routines.
  • Professional Credit Control speeds up the cash flow even further and helps identify early signs of payment problems keeping bad debts to a minimum. Most factors collect debts in 45/50 days.
  • On line access to credit ratings allows you to trade confidently with new customers.
  • Bad debt protection means you get paid within 120 days of the invoice date even if your customer becomes insolvent. You also avoid the policy administration/claims procedures associated with traditional credit insurance.
  • Most Factors only require a charge over your debtors and a warranty from the directors, whereas a bank will take a full debenture plus directors guarantees thus tying up all the Company's and Directors assets.

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Our Partners

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