How does invoice factoring work?
Everyday business: You keep doing what you’re great at – providing services or selling products to your customers, and invoice them as normal.
‘Sell’ your invoices: You get to choose how much of the money you’re owed you want to release from your sales ledger. Your invoice factoring provider will buy the outstanding debt on those invoices.
Get your cash: In just 24-48 hours, you’ll get up to 100% of the value of your sold invoices directly into your bank account.
Customer pays their invoice: The provider will handle payment collection with invoice factoring, so you don’t need to worry about chasing the payments. The customer pays their invoice straight into the provider’s trust account.
Receive the balance: Once the payment is received, and previously agreed-upon fees and charges are taken by the provider, you’ll receive the remaining balance from your invoice straight into your bank account.
An invoice factoring broker connects businesses with suitable invoice factoring providers.
Touch Financial is the UK’s leading invoice finance broker. When you work with an expert finance broker like us, you get access to expert advice without any cost to you before making a commitment to a specific provider.
We’ve carefully hand picked a selection of over 25 of the UK’s top invoice factoring companies. After a conversation with our expert consultants, we’ll aim to connect your business with up to three factoring providers. This way, you can have individual discussions with each one to understand how they operate and get a clear picture of their service costs.
We take several things into account when considering the right provider for you:
- The size, industry, location, and trading history of your business
- The size, industry, location, and trading history of your customers
- The type of work you do, and;
- The size and frequency of your invoices.
You’re not obliged to move forward with our services in any way. At the very least, you’ll leave the process with a better understanding of the available products and an idea of the potential cost involved in entering into a factoring arrangement.