The firm have a wealth of experience in dealing with factored invoices, whether you are in receipt of a factored invoice or you are a well-seasoned company factoring various sized invoices. Whatever your industry we are here to provide advice and assistance.
We have helped factoring companies recover large sums of money via our debt recovery team. We adopt the same proactive and professional approach irrespective to the invoice total and this is explained fully. We advise in detail to both sides the requirements of factoring invoices, how it can help companies with their cash flow and often raise cash more quickly and cheaper than a bank loan.
As a business considering factoring for the first time
A factored invoice means you are selling control of all or part of your invoiced book of business. You continue to provide services to your customers for goods and services and you sell the face value of the invoice to a factoring company for a discount. This is usually between 80-90% of the value and your customers pay the factoring company directly and the factoring company chases payment of the invoices where necessary.
Different types of factoring:
- Advance and Maturity Factoring
- Domestic and export factoring
- Disclosed and undisclosed factoring
- Recourse and non-recourse factoring
For advice on which type of factoring is best suited to your needs contact us today and we will provide you with
Benefits of factoring
Factoring allows you to release the cash value of the invoices albeit at a discount sooner than the 30 day payment terms or what ever you have agreed with your customers.
This injection of cash can help you:
- Repay a loan
- Take advantage of potential new business opportunities
- Ease cash flow constraints
- Bridge short term expenses
- Credit control support which allows you to focus on the business rather than debt collection which can be time consuming and detract from business development and growth.
This can improve your business’s chance of survival and help meet payroll commitments whilst your business weathers the challenges of market forces, the recovery from Covid and the new economic challenges faced by the war in Ukraine and other political social issues that effect your industry at present.
Draw backs to factoring
Generally speaking, the use of factoring is mostly suitable for companies that have a large number of difference customers rather than two or three main ones, so it is not always an option available to all companies.
Factoring companies will undertake extensive due diligence. It is important that you continue to manage the relationship with your customers, during this stage and at all times meeting parties expectations. Some companies will need to monitor and at times change their business strategies. We are able and happy to give you advise on this.
So, whether you are a company looking to explore or to take advantage of the factoring services and need some advice along the way, we can help. If you are a factoring company requiring litigation service to recover long standing debts, or are in receipt of a factored invoice and are unsure what the ramifications are for you, do get in touch and our finance and insolvency team will gladly assist offering sound advice.