Invoice Factoring

Invoice factoring is a way for businesses to fund cash flow by selling their invoices to a third party a factor or factoring company at a discount.

Invoice factoring. We have helped over 7 000 small and mid sized businesses manage their working capital. It is a financial product that enables businesses to sell unpaid invoices accounts receivable to a third party factoring company a factor. It improves your cash flow and can free up your time because we manage your invoicing and debt collection processes. Invoice factoring is a financial transaction in which a business sells its accounts receivables invoices at a discount to an external financing company known as a factor or factoring company.

Around 45 000 businesses in the uk currently use factoring abfa as at q3 2015 2 also known as. Here s everything you need to know about invoice factoring. A business will sometimes factor its receivable assets to meet its present and immediate cash needs. Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable i e invoices to a third party called a factor at a discount.

Factoring usually includes credit control services and helps companies release cash from their debtor book. Invoice factoring or debt factoring gives you instant access to cash tied up in your unpaid invoices while an expert credit management team look after the collection of payments on your behalf. Invoice factoring allows businesses to release cash tied up in outstanding invoices and is efficient because we manage your sales ledger credit control and collect payments from your customers. Invoice factoring can be provided by independent finance providers or by banks.

Invoice factoring is sometimes referred to as factoring or debt factoring. We re an invoice factoring company that provides invoice financing services in truck factoring as well as freight factoring or small business factoring. The factoring fee also known as the discount rate can run from 1 to 5 depending on the invoice amount your sales volume your customer s creditworthiness and whether the factor is. Invoice factoring allows a business to grow and unlock cash that is tied up in future income so that it can re invest that capital and time is not spent collecting payments thus there is a removal of the unpredictable nature of waiting for payment so that revenue can be booked and capital is then available to spend.

Forfaiting is a factoring arrangement used in international trade finance by exporters who wish to sell their.