- 27 Aug
An Example Of How Invoice Factoring Grows With Turnover
If we take an example of a business turning over say £250,000 per annum. If we assumed that invoice factoring or overdraft would both release say £50,000 of funding as turnover increases the overdraft will still be £50,000 unless it's renegotiated and more lending may need more security. However, with invoice factoring, if the turnover were to increase to say £500,000 per annum, the funding would rise accordingly to £100,000 (assuming that all other factors remain the same). In this way invoice factoring grows with your turnover. The above numbers are illustrative only.