- 03 Jul
If you need factoring help you are in the right place.
To speak to a finance expert please call Sean on: 03330 113622 and he will be able to help you.
Factoring is the term used to describe a range of financial services that are used by businesses that sell to other businesses on credit terms. The services improve their cash flow and remove or reduce the need to operate their own credit control function. The service works by offering two services (as a minimum) - prepayments and credit control. This distinguishes it from invoice discounting, where no credit control is provided.
Funding is provided against the unpaid credit invoice. This means there is no need to wait for debtors to pay, before being able to spend the cash that is tied up in unpaid invoices.
A credit control service is provided. The exact terms will vary between providers, but in some cases it is a fully comprehensive service such that you will no longer need your own credit control function.
Optional Extra Services
There are other optional extra services that can be included, but are not required for it to be considered a factoring facility. These include bad debt protection, that shields your business against taking a bad debt. Payroll management is another option, whereby the running of your payroll is outsourced.
Confidentiality is also an option. This means that the credit control is undertaken in the name of your business, so that your use of the facility remains "confidential" from you customers. If you deal with customers abroad, export factoring options will help you finance and collect those invoices.
For more help understanding the product variations, we provide help with all the types of factoring on our site.
If you were looking for help with mathematical factoring, we also have resources that will assist you.