- 21 Jul
Help With Slow Payments
Factoring can help with slow payments from customers and debtors in two ways. Firstly factoring will release cash against unpaid sales invoices, for example 85% of the gross invoice value could be released with the balance, less charges, passed to you when the customer pays. The second benefit of factoring, with regard to slow payments, can be from the credit control service provided by factoring company. This is normally provided by specialist credit control staff who have both expertise, experience and, in some cases, the benefit of a well-known name within the factoring industry behind them. This often results in a factoring company being able to achieve an improvement on the debt turn achieved by a company handling the credit control themselves. If you have problems with slow payments from customers and debtors, factoring may well be a solution that will provide benefits to your cash flow.