Factoring
Factoring is a form of lending where a Factoring company advances you money against the value of your invoices as soon as they are issued. This enables you to improve your business cash flow and more easily manage your sales ledger.
You can normally receive up to 90% of the invoice value within 24 hours which means you’ll never suffer at the hands of late paying customers again.
How factoring can benefit your business
- Factoring is competitively priced compared to overdrafts and business loans
- You have more working capital to put back into your business
- The facility grows with your business so there is no need to keep increasing your overdraft or take out additional loans
- You’ll know when you’ll be paid, which helps you manage your cash flow
- You can react more quickly to market opportunities
- The Factor can manage your sales ledger and protect you from bad debts
Why get a factoring facility through Simply Business?
- We have access to the UK’s leading Factoring providers
- Compare quotes online or speak directly to one of our consultants for free, impartial advice
- Our specialist consultants can match your business with the best facility for your industry, requirements and working style
- There is no charge for setting up your facility
Contact us now for a free consultation on 0800 072 6030
What are the main features of Factoring?
- Up to 90% of the value of your invoices can be advanced by the next working day
- Flexible finance – Factor some or all of your sales ledger
- The Factoring company can take over management of your sales ledger
- The facility is easy to set up through Simply Business
What does factoring cost?
Fees for factoring services are two-fold:
- 1. Service fees – covers the day to day servicing of your purchase ledger. Normally between 0.5% and 3% of your turnover.
- 2. Interest charge – charged against the amount of each invoice. Usually a fixed percent above the factoring company’s base rate.
