Is my business suitable for factoring?
If your business sells on trade terms to other businesses, the answer is probably yes. The sales can be either within the UK and or export. Generally a proof of delivery / satisfaction / time sheet is required to show that you have fulfilled your part of the transaction and the debt is good.
What is factoring?
In it’s most basic form, factoring is the raising of funds against your debtor book. Depending of the ‘collectability’ of your debtor book, the funder will generally look to advance funds up to an agreed percentage of your approved debts, the debts are assigned to the funder and they handle the collection of those invoices.
Business sectors which can use factoring
If we go back only a few years, the business sectors which factoring companies were comfortable with was somewhat limited….haulage, recruitment and manufacturing were amongst the favourites. Thankfully times have changed and we now see an element of specialisation coming into the factoring market and are finding that some factoring companies are looking favourably at sectors which in the past would have been difficult to arrange a facility for. Construction and businesses with a high concentration of debtors or export debts can now be factored.
Why should I use a factoring broker?
To put it simply, we know the industry inside out! As previously mentioned, there are factoring companies who specialise in specific sectors and with the large number of funders now providing this finance in the UK, you could potentially spend an awful lot of time and resource trawling around the market place….all this time you are not doing your day job.
Unlike some of the brokers online, we do not ask you for a lot of information which you need to put into a form to then generate automated quotes which are likely to differ once you have been visited by the ‘chosen’ provider. We would rather take some basic details, have a chat, get to know your business and what you are looking for and only then, start to look at which funder is likely to be the best fit for you.
Our service to you is FREE, we get paid a commission directly from the funder for our successful introduction. We are completely independent and do not have ties with any particular lender.
Get in touch today, we’re more than happy to have a chat, we’re not pushy and if we can help we will, equally if we can’t we’ll be upfront with you.
What other choices to factoring are there?
Factoring may be with insurance or without. Insuring your debtor book for a small premium may provide additional peace of mind.
Some factoring companies provide a service whereby you handle your own collections…a midway point between Confidential Invoice Discounting and Factoring.
Single debtor factoring, whereby you pick and choose the invoices or customers you wish to fund via factoring.
To have a chat with us about any of these services, please get in touch.