Factoring is a form of cash flow funding which allows you to release cash from unpaid invoices as soon as they are raised. You could release between 80-90% of the cash tied up in unpaid invoices, with the cash made available to you within 24 hours of raising an invoice.
“ The advantage of factoring is that it gives your business an immediate injection of cash. Rather than having to wait 60 days, or perhaps even longer, you will have money immediately available to re-invest in your business. ”
With Factoring, you send a copy of the invoice to both your customer and the Factoring lender. The lender will then make a pre-agreed percentage of the invoice value available to you, this is usually between 80-90%. The lender will then collect payment from your customer and return to you the remaining 10-20% of the invoice value, minus any fees.
Approved invoices are purchased before the due date and the final price and terms are agreed based on our credit score, taking into account your customers and services and/or products sold.