What is Factoring?
You’ll be surprised at just how effectively a flexible Factoring arrangement can assist your Cash Flow and Working Capital problems. In essence a Factoring facility draws cash quickly in to the business by converting your debtor book into readily available revenue, the security for the advance being the invoice itself.
No matter what the age and size of your business we can normally provide a workable and cost effective invoice finance solution to improve the cash flow in to your business at rates often far better than overdraft terms.
The main types of invoice finance include:
The Invoice Finance Company (IFC) provides finance against the whole of the businesses debtor book / ledger. Invoices raised by the business are paid directly to the IFC (this is the most commonly used type of Invoice Finance).
- Invoice Discounting
Invoice discounting is very similar to Factoring save that the business continues to administer their own debtor book.
- Spot Factoring
Spot factoring tends to be either used a certain times of the year or against specific invoices.
- Trade / Stock Finance
Trade and or stock finance is often used in conjunction with invoice finance facilities as it often enables borrowing to be repaid when items / products are either sold or invoiced.
Key benefits of factoring include:
- CBILS eligible
- Up to 90% of the Invoice Value paid to you on issue
- On-line process and cash paid in to your account same day / next day
- Facility available to new start business with turnover from just £100K per annum
- Bad debt insurance can be included if necessary to give additional peace of mind
- Factoring can be offered to most Business types and Industry Sectors
- Reduced finance costs over traditional overdraft facilities
At Wattsford Commercial Finance we offer free and unbiased advice and will tailor a Factoring and Invoice Finance solution for clients to meet their exact needs and budget. Our level of service is extremely high which is vital at a time when more and more businesses are finding that they have to look beyond the traditional Bank overdraft to satisfy their increasing cash flow needs. We will provide you a view of the entire market – quickly and efficiently and can implement a Factoring solution without disruption to the running of your business.