Simple factoring services for your business
A factoring service 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.
Simply Business works with invoice finance specialists Aldermore Bank 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.
Benefits of using a factoring service
- 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 service manages your sales ledger for you.
- You have more working capital to put back into your business.
- A factoring service is more competitively priced than overdrafts and conventional loans.
What does a factoring service 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 service facility through Simply Business
- Complete our simple form to receive a call-back from one of our experienced factoring specialists to discuss your requirements
- You will then be referred to one of the Aldermore industry specialists who can either provide you with a email quotation or a face to face appointment
- If you are happy with the quotation, Aldermore will then discuss with you the next steps to putting a bespoke facility in place for your business