Factoring is a type of business finance specifically designed to increase working capital or liquidity by “selling” the company’s outstanding and future sales invoices to a factoring company as and when they are raised, in return for an immediate payment of a pre-agreed percentage of the invoice value.
The factoring company will also maintain the sales ledger including credit control so there are administrative savings to be made in addition to the increased liquidity.
In practice invoice factoring companies will often advance up to 85% of the invoice value (including vat) as and when the invoices are raised with the balance of 15% being paid over when the customer has paid the account to the factor.
Factoring is suitable for most companies that sell a product or provide a service and is more effective for companies who’s major asset are the trade debts due to them as banks are no longer interested in offering overdraft facilities to this type of company, especially if the company is newly established.
Although supposedly straight forward there are often alarming operational differences between the facilities on offer between one factoring company and the next as whilst most claim to offer an efficient and personal service very often the reverse is true with the lack of flexibility strangling the life out of their client and the levels of funding never reaching the expected levels thanks to a range of excuses used to keep funding as low as possible.
Invoice discounting is similar to factoring but in this instance the company continues to maintain it’s own sales ledger and handles it’s own credit control.
In addition invoice discounting tends to be confidential with the customer being aware of the financing arrangement as there is no notice of assignment on invoices
Who are Factoring World
Factoring World is a trading style of Factoring Solutions Ltd which is widely recognised as an industry leader and by using our free factoring broker services, you will have the benefit of over 40 years industry experience and expertise to ensure a bespoke solution for your growing enterprise.
So as we introduce you to the business and assist and advise you in your negotiations, the factoring company pays us a commission meaning, unlike with many other brokers; you won’t pay us a single penny for using our broking services.
Secure for your business, We offer all new UK clients:
• Lower Rates
• Customised Products/Service
• Free transparent negotiations
• Best new UK deals
• Ethical advice
• Fast bespoke negotiations
• Professional Services
• Progress updates
Enjoy cheaper rates than by going direct
With our years of experience we have formed close relationships with many factoring and invoice discounting companies and the sheer volume of enquiries that we introduce to them means that we can leverage better rates for our clients.
Tap into over four decades of UK insider knowledge
Like all businesses, no two brokers are the same. Likewise, no two factoring services or products are the same. You will have the benefit of our specialised services and knowledgeable negotiation skills.
Discover a professional, bespoke and friendly service
We know which companies perform, we introduce you to the best invoice finance company and product/service for your unique business.
You will enjoy a personal service with an adviser who prides himself on being highly ethical and professional at all times.
There are no charges for our services as they are free so for an informal, friendly chat with an expert, please contact Factoring World now on 01827 707680.