Invoice Factoring

Borrow 70% to 80% of your unpaid invoices. The factoring company ‘buys’ your debtors giving you instant cash.

The lender will then manage the whole credit collection process, collecting the money from the customers and then accounting for the balance of the cash.

The lender will charge a management fee for managing the credit process and a ‘discount’ on the invoice, equivalent to interest, however with the reduction in the companies own administration it can often be highly cost effective as well as providing a very flexible source of funding.

Lenders are keen on Invoice Factoring and Invoice Discounting as their lending is directly secured and so is seen as a better risk than a general overdraft facility, particularly for young or growing companies or companies that have had an inconsistent profit record.

Freeing up your income