Many businesses need to use Factoring as a way of raising finance for their company. One of the most common problems a business faces is how to improve it’s cash flow.

Factoring offers a solution to that problem. If you have issued invoices to your customers you might be waiting for 60 days to receive payment. Instead of having to wait 60 days you could quickly open up that cash from your invoices and have up to 95% of it almost immediately.

Factoring lets you focus on other aspects of your business

Another advantage of the service is that is that the Factoring company will be able to manage your sales ledger. You would then not have the hassle of credit control or collecting payment from customers.

You would be free to focus on aspects of your business that can help grow your company. There are lots of small businesses that get tied down by managing their finances, so it’s definitely a way to reduce that burden.

Flexibility

Invoice Factoring is flexible. You can borrow small amounts or larger amounts, often up to 95% of the value of your invoices.

Grow your business sustainably

You know you’re not taking out a business loan that you can’t pay off. You’re borrowing money in line with the invoices you’re issuing, so it’s a great way to speed up the growth of your business.

You don’t need to secure the loan against other assets

Another great advantage of Factoring is that the loan isn’t secured against property or machinery that you already own. You don’t have to take on that risk.

How much does Factoring cost?

This depends on the lender that you use but it’s generally calculated by a percentage of the loan that you take out.

If you want a flexible form of finance that helps you grow your business then this type of lending might be the best way to go for your company.