Invoice Factoring for growth and survival

Factoring gives you something that most businesses find extremely valuable, and that is cash. Invoice Factoring allows you to free up cash from your unpaid invoices to use in other areas of your business such as growing your company.

The reason most businesses fail is because they run out of cash

Factoring can provide your business with a much needed injection of cash to pay bills and suppliers when that cash is needed most. There is very often a difficult gap between when an invoice is raised and when it is paid that can be filled by Factoring.

Factoring helps your business grow

Many businesses use invoice Factoring to grow their business. You might have a lot of customers but not have the cash flow to match how well your business is doing because of the gap between raising an invoice and being paid. Factoring can give you that much needed cash so you can grow your business.

The great thing in this situation is that you are borrowing against invoices that are already raised so you are just getting your cash earlier and aren’t taking large risks.

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.