Learn more about invoice financing
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.
Simply Business works with Aldermore to offer a range of Invoice Finance and Asset Based Lending Solutions with quick decisions from their dedicated and experienced local teams based around the UK.
How does it work?
When you have arranged a factoring facility with Simply Business and Aldermore, you send your invoices to your customer and to Aldermore who will then transfer up to 90% of your invoices to your account, allowing you to get on with your job.
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 which will be confirmed in your offer letter.
When should I consider factoring?
Not every business can benefit from an invoice finance solution. Usually sectors where the principal asset is an invoice are suitable for an invoice factoring facility. Small businesses with a minimum of at least £50,000 without their own in-house credit departments are suitable to use factoring.
Setting up a factoring 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