Finding The Best Small Business Factoring Quote

Many businesses, and particularly small businesses, looking to improve their cash flow situation in order to grow, or even survive in these harsh economic times, turn to factoring as a solution.

In doing this they choose a factoring company who agrees to pay up to 95% of all their outstanding invoices with the balance becoming payable once payment is received from the customer. As a strategy it offers a number of benefits for any business. Obviously improved cash flow is one, as well as the easing of an administrative burden of chasing payments as this is a responsibility which will be taken up by the factor.

The good news for businesses looking for a factoring partner is that there is a very wide choice available – though some may find that it’s possibly too wide a choice.

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The benefits of going through a broker

An ideal way to narrow down the search is to go through a factoring broker such a Touch Financial. Not only are brokers fully aware of the benefits and specialisms of particular factoring companies, they also make it easy to get a small business factoring quote online in a matter of minutes

Touch Financial have close and longstanding links with over 20 of the main factoring companies for every kind of business in the UK and are in the ideal position to give independent and accurate advice about the particular advantages of each one.

The first step however, is to get a general quote. The easiest way to do this online at www.touchfinancial.co.uk/quote (?).

Getting a small business factoring quote is a simple, step by step process which takes only minutes to complete.

• Business details
  You will be asked about the business sector in which you operate, the approximate level of your annual turnover and the number of years you have been established.

• Financial details
  To get a clearer idea of whether factoring will be suitable for your business, you will be asked for some slightly more detailed information. This will include the average number of invoices you issue each month, and the number and value of the ones which are currently outstanding. You will also need to give information about the average length of credit normally extended to customers and the proportion of total turnover generated by your biggest one.

• Your quote
  From the information provided Touch Financial will be able to give you a guideline small business factoring quote which will include all the following information.

The service fee. This is the fee that will be payable on every invoice and will be represented as a percentage of the total invoice amount. This only becomes payable when an invoice has been settled in full.

The cost of money over base rate. There will also be an interest charge made on each invoice as long as it is outstanding which will be set at the Bank of England Base Rate plus an agreed extra percentage.

The payment level. This is the percentage of the invoice amount which you will receive on every invoice submitted to the factoring company. This can as high as 95% but will depend on individual business circumstances.

Contract term. This is the minimum length of time the contract with the chosen factoring company will be in force.

Term notice. This is the minimum notice period needed to terminate any agreement that’s been made.

Your small business factoring quote

Any small business factoring quote you receive will give you a broad outline of the costs and conditions and the next step will be to contact Touch Financial to be introduced to the recommended factor to fully discuss your needs. The number is 0845 388 9725 and a Touch Financial adviser will be on hand to offer independent and comprehensive advice.

Get a small business factoring quote now >>

Also in this section:

• Factoring service, the right finance solution for your business?
• How to find the best small business factoring quote
• How can you benefit from business factoring?
• Factoring future cash payments
• Read more about factoring invoices