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What Is Invoice Factoring?
Invoice Factoring enables businesses to increase cash flow by receiving an upfront cash payment against a customer invoice rather than waiting for the customer to pay the invoice. The factoring company will then be responsible collecting the customers payment.
How Invoice Factoring Works
Invoice Factoring is the process, whereby a business sells its invoice to a third party company. That company is then responsible for collecting the payment from the customer and providing credit control. The third party will provide an upfront cash payment to the business.
This provides instant access to cash flow, whilst also maintaining the same payment terms as before e.g. 90 days. The Invoice factoring company will pay a percentage of the invoice total to the business and retain portion alongside other applicable fees for providing the service.
Save Time Chasing invoices
Transparent Fees
Increase Cash Flow
Access funds quickly
Flexible to your needs
Reduce Bad Debt
Cost of Invoice Factoring
Factors that can influence the Cost & Fees
- Customers credit Worthiness
- Quantity of Invoices
- The Invoice Value
- The Customers Business Industry
- Financial Position Of The Business
- Invoice Payment Terms
Is Invoice Financing Right For my business
Invoice Factoring is suitable for product and service based businesses
If you are business that has outstanding invoices that have not been paid by your customers then Invoice Factoring could be right for you, to start improving your cash flow.
comparing Invoice Factoring Providers
Pricing and rates for Invoice Factoring can vary depending your individual business requirements and no business is identical to another. As a result Invoice Factoring companies assess each business on an a case-by-case basis to determine prices.
As a result it becomes very important that you compare quotes, rates and terms from leading suppliers to ensure you are getting the best deal for your business. You can request a quote in two minutes and we will help you compare quotes.
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