Start improving your cashflow by factoring your invoices
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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 improve their cashflow and to prevent problems caused by late paying customers.
Simply Business works with invoice finance specialists Touch Financial to offer an expert, impartial service. There is no set-up fee and you can trial a factoring facility on a monthly rolling basis to make sure it is right for you.
Why choose factoring your invoices?
- When you issue an invoice you will know when it will be paid.
- No long term loan – the loan is repaid each time a client settles their invoice.
- The facility grows with your business so no need to keep increasing your overdraft.
- It saves you time – the factoring company manages your sales ledger for you.
- You have more working capital to put back into your business.
- 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:
- A Service Fee covers the day-to-day servicing of your purchase ledger. This can be between 0.5% and 3% of your turnover.
- 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
- Complete our simple form to receive quotes.
- Compare the quotes and the factoring team at Touch Financial will contact you to discuss them.
- One of their experts will help you to decide upon the best facility and factoring company for your business needs.