What is a factoring company?

Most factoring companies will be able to offer you either invoice factoring or invoice discounting. In both cases they will provide you with up to 90% of the total amount of the customer invoices that they buy from you. With factoring your factoring company mange the progress of customer accounts leaving you to concentrate your efforts elsewhere. However full confidence will be kept and your custo mer relationships will be valued. Should you choose to opt for discounting then you will remain in full control of chasing payments from your customers and will manage your accounts yourself. In both cases you will receive the remainder of the value of the invoices once your customers have made their own payments.

The factoring company acts as the third party who help maintain a healthy cash flow. They are primarily concerned with the ability of your customer to pay you rather then the other way round which is how the banks operate. Therefore the better your business does the more cash you can get hold of immediately rather than wait until your customer has paid. Factoring is often the best way of getting hold of the cash that is already yours but you just haven’t got it yet. You won’t be borrowing and getting into debt with loans that you have not really got a way of paying back. You know that your customers will pay you and that the money you get is simply an advance. For many this can be a real opportunity to free up their cash to use it elsewhere and often when it’s needed most.

We can get you an update as to the status of your application within minutes and you could have the cash you need the same day. Why wait 30, 60 days or even more for your customers to pay you what they owe you, use our fast and confidential comparison today.

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