Factoring Overview
Factoring is the process of turning unpaid invoices into cash, allowing you to maximise your cashflow. As part of this service a lender can also manage your sales ledger, credit control and collect payment from your customers.
How factoring works
When you issue an invoice you send a copy to both your customer and factoring provider. The lender will then advance you up to 90% of the value of the invoice, with funds typically available to within 24 hours of invoices being issued. The lender will then chase payment from your customers and return to you the remaining balance, minus service fees.
Benefits of factoring
- Gives you instant access to the cash you’ve already earned!.
- Flexible form of lending allowing you to borrow as much or as little as you like.
- Eliminates the time and money spent on credit control and chasing payment from customers.
- No other assets are required to secure the funding.
- As well as a financial resource factors can also provide excellent strategic advice to help grow your business.
- Can operate as a confidential service so your customers don’t need to know you use the service.
How much cash could you release from your unpaid invoices? Get a quote online now >>
Is factoring right for your business? It could be if
- You’re an organization in the UK dealing in business to business sales
- You have a projected annual turnover of at least £50,000; and
- You issue invoices with credit terms of between 30 and 90 days
How much does Factoring cost?
The cost of factoring is driven mainly by the lenders service fee, this is an agreed percentage of the cash you draw from the lender. Using our online quote form you can calculate the cost of using a factoring service.
Why use Touch?
Our aim at Touch is simple, to save you time and money by putting you in touch with the right lender.
No-obligation quotes are available through our quick and easy to use online quote form. We also have a dedicated team of factoring experts on hand to take your call should you need any more information or advice.
We’ve helped thousands of business owners find the right finance through over 60 years combined experience in the commercial finance arena, how can we help you?
