Invoice Factoring Brokers UK | Invoice Factoring Solutions

What is invoice factoring?

Invoice factoring solutions bridge the cash flow gap that arises from trading on credit terms by releasing up to 90% of an invoice’s value within 24 hours of its issue.

The invoice factoring company will also provide a dedicated sales ledger management service. As well as bringing expertise, it also removes the burden of managing your credit control function in-house, providing the time to focus on core activities and secure new business opportunities.

Invoice factoring solutions can additionally incorporate bad debt protection for added peace of mind. This safeguards the business against the threat of bad debts or protracted default – non-payment of an invoice after an extended period.

How does invoice factoring work?

Your business raises an invoice
The invoice factoring company advances up to 90% of its value within 24 hours
Your customer pays the invoice factoring company in line with the agreed credit terms
The remainder of the invoice value is made available, less the invoice factoring company’s fee

Benefits of invoice factoring solutions

Invoice factoring bridges the cash flow gap between paying suppliers and getting paid
The factoring company’s credit control expertise helps to reduce in-house overheads and improve collection times
Invoice factoring is more flexible than overdrafts and bank loans, as funding grows in line with sales ledger
Credit protection can safeguard against debtor insolvency or protracted default
Improved cash position can help you secure supplier discounts
Invoice factoring solutions can be provided on a confidential basis

See how factoring helped our client to grow

Different invoice factoring solutions:

Recourse Factoring

Recourse factoring is the most common invoice factoring solution, releasing up to 90% of your sales ledger within 24 hours, with the invoice factoring company additionally providing a sales ledger management service.

Non-Recourse Factoring

Non-recourse factoring works in the same way as recourse factoring, but additionally incorporates bad debt protection. This safeguards your cash flow against late payment and bad debts.

Confidential Factoring

The difference with confidential factoring is that all sales ledger management activity is conducted under your company’s name, rather than the invoice finance company’s. This allows you to benefit from the added expertise while keeping your financial arrangements private.

Reverse Factoring

Also known as supply chain finance, this option involves the invoice factoring company advancing payment to your suppliers. This allows your business to keep longer payment terms, while still enjoying early settlement discounts and stronger relationships with their suppliers.

Export Factoring

This factoring solution is specifically designed to support businesses that export goods overseas, as these invoices often carry extensive credit terms. The invoice finance company’s management of your sales ledger can be particularly useful here where there may be language and cultural barriers.

CHOCCS

CHOCCS (Client Handles Own Credit Control) factoring allows businesses the benefit of releasing up to 90% of their invoice value, but means they maintain responsibility for collecting payment. This can help when it comes to nurturing key relationships.

Which invoice factoring company is right for my business?

Finding the right invoice factoring company for your business’s particular needs can be both challenging and time-consuming. The expertise of a specialist invoice factoring broker can be invaluable in this process.

Save time in your funding search
Benefit from extensive knowledge of invoice factoring companies and solutions for your sector
Gain access to key decision makers within the factoring companies
Understand which invoice factoring solutions would be most beneficial
Find the right fit in terms of funding, level of service, culture and cost

To explore your options with one of our invoice factoring specialists, call us on 0800 9774833 or request a call back today.