Simple factoring solutions for your business

Simply Business works with factoring broker Touch Financial who offers invoice finance solutions for a variety of businesses.

What is a factoring broker?

A factoring broker offers various factoring services. Factoring is a type of lending where the money you are advanced is borrowed against the value of your invoices. Many businesses use it to regulate their cashflow and to prevent problems caused by late paying customers

Benefits of using a factoring broker

1. When you issue an invoice you will know when it will be paid.
2. No long term loan – the loan is repaid each time a client settles their invoice.
3. The facility grows with your business so no need to keep increasing your overdraft.
4. It saves you time – the factoring broker manages your sales ledger for you.
5. You have more working capital to put back into your business.
6. Factoring is more competitively priced than overdrafts and conventional loans.

What does factoring cost?

Rather than charging interest and arrangement fees like a bank loan, factoring fees are split into two parts:

1. A Service Fee covers the day-to-day servicing of your purchase ledger. This can be between 0.5% and 3% of your turnover.
2. Interest is charged against the amount of each invoice, usually at a fixed percent above the factoring.

Setting up a factoring facility through Simply Business

1. Complete our simple form to receive quotes.
2. Compare the quotes and the factoring broker (Touch Financial) will contact you to discuss them.
3. One of their experts will help you to decide upon the best facility and factoring broker for your business needs.