What is Factoring and Invoice Finance?
Invoice finance and factoring are effective and flexible ways for businesses to effectively manage their Cash Flow and Working Capital. They provide a facility that lets you draw down cash into your business, as an advance payment secured against the invoice, by converting your invoices (debtor book) into a readily available revenue stream.
Whether you’re a start-up business, trading for many years and irrespective of size we can usually provide a workable and cost-effective invoice finance solution that will improve the cash flow in 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 business’s 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 at 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:
- Recovery Loan Scheme 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.