Factoring Services

What are factoring services?

This phrase is used to collectively describe the companies who can who help you raise money based on the value of your outstanding invoices. Factoring is often used by growing businesses, to increase working capital.

Often regarded as a more flexible source of finance than overdrafts or loans, factoring services can often take on your sales ledger operations work. It can add more complex credit rating to your finance operations too.

Solve business cashflow problems

If you run your own company, you know that your sales invoices can be your biggest asset in your balance sheet. Sadly, the rate at which invoices get converted into cash can be slow. Sometimes, you might wait for two or three months' sales to materialise into cash.

When you find you are regularly experiencing this type of 'cashflow poor' scenario, you can turn to factoring services to release cashflow. Remember too, raising finance through factoring can also help you cut administration costs when sales ledger work is outsourced to a factoring company.

What are the main types of factoring services?

There are two types of factoring solutions:

• invoice factoring
• invoice discounting.

Industry specific factoring solutions

There are specialised factoring services which tailor to selected business types. Find out more about factoring for:

• for start ups and new businesses
• export companies or
• haulage companies.

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