Is my business suitable to use Factoring?

Over 50,000 businesses in the UK already take full advantage of a factoring facility. Your business could be suitable if you:

• Raise invoices against other businesses

• Have an annual projected turnover of over £50,000

• Provide credit terms of between 30 – 90 days

If you can answer yes to the three questions above then your business could be eligible to use a factoring service.

Here’s a look at some of the industries which are best suited to use invoice factoring:

Recruitment
At any one time a third of the recruitment industry use either factoring or invoice discounting. Why? To save time and help their business grow.

You can release up to 90% of the value of your invoices as soon as they are issued. Ensuring you have enough cashflow to cover outgoings such a payroll, equipment, office space etc.

To save you valuable time and resources your factor will also manage your sales ledger, credit control and collect payment from your customers. This is invaluable if you don’t necessarily have adequate management systems or headcount in place to manage your sales ledger effectively.

Manufacturing
Buying materials, paying staff, powering equipment etc, are all sizable overheads. Using factoring you can use a cash advance against your unpaid invoices to bridge the gap between raising invoices and receiving payment. Your factor will also take control of your sales ledger removing the headache of managing your credit control and chase payment from your customers.

Construction
Thousands of construction companies use factoring to ensure that they can make payroll, buy materials and also arrange discounts with suppliers for settling invoices earlier, ultimately reducing the costs of a job.

Unlock the cash tied up in your sales ledger. Get a factoring quote online now >>