Release Cash Immediately With Receivable Factoring

Receivable Factoring is all about releasing the cash that’s tied up in unpaid invoices. At any point in time a business can easily have up to three months of sales invoices unpaid – that’s 25% of annual turnover.

Having that much cash imprisoned in your sales ledger can cause serious problems. Every business has suppliers to pay, payrolls to run and other financial commitments. Lack of cash can also stifle investment and business development, because there’s no money to invest in new products and services.

It can also add to your administrative overhead. More time and effort is required to pursue customers who are slow to pay. Cash flow management – ensuring that there’s going to be enough money available this week, next week and beyond – takes longer when money is in short supply. Sometimes it can feel as if you are running simply to stand still.

Receivable Factoring releases the cash that’s locked in the sales ledger, allowing it to flow into your business at what may be a crucial time.

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Which businesses are eligible?

If your organisation meets the following criteria it’s probably going to be able to apply for Receivable Factoring:

  • A UK based business (sole trader, partnership, limited company or plc).
  • Has a projected turnover of £50,000.
  • The majority of its commercial activity is business to business.
  • Offers its customers credit terms of between 30 and 90 days.

If you want to get an idea of how much capital your business could release through Rceivable Factoring, and get an indication of the costs, complete our online quote form now.

Here are some examples of the type of business which could benefit from Receivable Factoring:

Manufacturing Business You can’t run a manufacturing business without a constant supply of raw materials. Factoring helps to ensure that suppliers can always be paid on time.

Continued investment in plant and machinery is essential, but there’s always a gap between the purchasing and the generation of income through sales. Factoring is a cost effective and flexible way to help bridge that gap.

Logistics Operations Vehicle fleets are always thirsty, drinking cash in the form of fuel, repairs and maintenance. Factoring can supply the cash needed to keep vehicles on the road and drivers behind the wheel, even if customers stall the settling of their accounts.

You want to keep your overheads low to maximise productivity and profitability. Factoring takes a major administrative challenge – credit control – out of your hands, so that you can focus your resources on the more constructive task of running and growing the business.

Software Developers Cash flow for software businesses can be seriously ‘lumpy’, particularly when they’re working on projects that span several months.

Factoring releases cash that can be used to invest in staff and technology. It can help the business achieve its strategic goals more quickly, while also cutting the administrative overheads associated with credit control.

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Also in this section:

Every month Touch Financial help businesses improve their cash flow with invoice finance. Request a quote to find out how much extra cash you could raise.

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