Factoring Help from Touch Financial

Invoice factoring is a commercial tool that’s available to most businesses in the UK. If you’re not sure what it is, the benefits it offers, or how to find a supplier, here is some factoring help.

The fundamentals of invoice factoring

The purpose of factoring is to free up cash that’s locked away in the sales ledger of a business. Many organisations offer their customers credit, meaning there’s a delay between raising an invoice and getting paid.

The problem with this delay is that you can’t access money that you’re owed in order to pay your creditors. When cash flow is tight and customers are taking too long to pay, there’s a real threat of a business running into serious financial problems.

Factoring provides an escape by allowing you to get paid as soon as you raise an invoice. Your business enters into an arrangement with a factoring supplier whereby they pay you as much as 90% of the invoice as soon as it’s issued.

The factoring supplier becomes responsible for collecting the debt from the customer, meaning they take on the credit control responsibilities. When the customer settles their debt the balance of the invoice value, less a small service fee, is passed to you.

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Factoring help – The benefits of factoring

There’s more to factoring than simply borrowing money. It’s a service that’s designed to help you run your business more effectively. The key benefits of factoring are:

• A flexible approach to finance, allowing you to effectively borrow what you need, when you need it
• Cuts administrative overheads, as credit control is outsourced to the factoring organisation
• Management has more time to focus on business development rather than business survival
• No assets are used as security
• The service can be kept confidential if required, meaning that customers are not aware of it

Finding factoring help

The good news is that there are plenty of potential suppliers out there, ranging from high street banks to niche specialists focusing on specific industries. That means the industry is competitive, keeping costs down.

A great place to start would be to see how much cash your business could unlock from its unpaid invoices. Get a quote online now.

If you’re unsure about whether factoring is right for you, or need help to determine your needs, why not talk to an independent advisor?

At Touch Financial we have a panel of factoring experts providing impartial advice and information to a range of organisations. We’ve helped thousands of businesses over the years, showing them how to achieve financial stability through tough times. Can we help you to do the same?

Contact Touch Financial today if you’re looking for factoring help. We’ve helped hundreds of companies find the right finance for their business. How could we help your business grow?

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Also in this section:

• Factoring help from Touch Financial
• Benefits of using factoring solutions
  
• The role of a factoring consultant
• Factoring quote