Compare invoice finance lenders
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 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.
How does it work?
When you arranged a factoring facility with Simply Business and Touch Financial, you send your invoices to your customer and the factoring lender. The lender will 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 above the factoring.
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 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.