Factoring Invoices

Factoring invoices has become increasingly popular in recent years with businesses looking to raise instant capital. Factoring invoices can give businesses an immediate cash injection of up to typically 80% of the value of their invoices, with the company getting the remaining percentage less an administrative fee.

How does Factoring Invoices work?

When a company enters into an Invoice factoring agreement they are basically selling their invoices to a third party. The invoice factoring provider will then process the invoices and allow you to draw loans against the money owed to your business. The invoice factoring provider will then collect the debt on the company's behalf.

What type of business uses Factoring Invoices?

Factoring invoices is a method of finance which is used extensively within timesheet orientated businesses such as temporary recruitment agencies and security firms. They are also common in many other industries including, manufacturing and wholesaling, as well as the contracting and construction industry.

What are the benefits of factoring invoices?

• Factoring invoices is a quick way of raising funds to purchase new stock, materials, or to pay staff or suppliers. 
• By factoring invoices, you can improve cashflow and enable you to implement better financial planning for the growth of your business.
• Factoring invoices can also be used to reduce administrative overheads for businesses which operate on a tight budget. 
• Many debtors may take more notice of a factoring provider, prompting them to pay invoices on time.