Factoring and Invoice Finance

Business factoring and factoring invoices have become extremely popular forms of raising company finance in recent years.

This form of raising company finance gives an immediate cash injection of typically up to 85% of the value of invoices when raised. The remaining balance of money is paid over once customers pay their invoices less an administration charge.

Under a factoring invoices arrangement, the financier will advance funds on the factored invoices and undertake all credit control activities.

Invoice Discounting

Invoice discounting enables the raising of company finance confidentially from invoices as raised while leaving a company to continue to take responsibility for credit control in-house. Funds are paid into a trust account held on behalf of the client at the financiers. Customers do not become aware invoices are being discounted.

Invoice discounting tends to be available for businesses with an annual turnover exceeding £500,000 and satisfactory credit control procedures in place.

At MCR Finance Brokers we can use our expertise to help you interpret an offer of finance. Head line figures on advance rates and concentration limits need to be analysed to ensure the offer meets the needs of your business.

Where is Business Factoring Solutions and Invoice Discounting Used?

Business factoring solutions and invoice discounting are used extensively within timesheet orientated businesses such as temporary recruitment agencies and man guarded security companies but are prevalent in many other industries including, manufacturing, service related wholesaling as well as certain parts of contracting and construction.

Business factoring solutions is at the core of any structured asset based lending, which may involve say, trade, stock and plant and machinery finance. It holds the finance package together as it gives the financier control of the sales cycle and provides strong security.

To find out how business factoring solutions from MCR Finance Brokers can assist your business in raising company finance, call us today on: 0871 873 2939.