Factoring is often also commonly referred to as cash flow finance, debtor finance or invoice finance and can dramatically assist in improve your cash flow and fund growth by providing an immediate injection of cash against the value of your outstanding invoices.

It is particularly popular because of the fact that in the vast majority of cases, real estate security is not required to secure the facility.

When you raise an invoice, the financier can release up to 90% of the value of that invoice within 24 hours once the facility is established, with the remaining 10% being paid (less the service fee) once your client pays the invoice.

In addition to the cash provided, factoring can also save you valuable management time. The financier can help manage your sales ledger by chasing and collecting outstanding invoice payments on your behalf. They can prepare and send out statements, undertake cash reconciliations and maintain professional and detailed accounts of your transactions so you can get on with growing your business.

With a Factoring or Debtor Finance facility, your business has access to a reliable, ongoing supply of cash linked to your sales. So as your business grows so does the amount of funding available to you, meaning your funding is always matched to the needs of your business, allowing you to grow, free from cash flow constraints.

• Improve control over cash flow to help your business run smoothly
• Fund business growth with increased working capital
• Win business by offering more competitive terms of trade with confidence
• Improve margins from suppliers with better buying power
• Protect the bottom line by reducing or scrapping early settlement discounts
• Save management time and money by outsourcing debtor management to professionals
• Release the family home from the business funding equation
• Access funds quickly to capitalise on business opportunities as they arise
• Improve supplier relationships through more prompt payment

Gain confidence in strategic decision making with reliable cash flow

Invoice Discounting

Invoice discounting is best described as the process of converting your trade debtors into cash. Unlike factoring, you are able to retain full control of your debtors’ ledger ensuring total client confidentiality. This is often preferable, as some clients do not want to know that they are raising funds against their invoices.
Typically we can provide a cash injection of up to 80% of your outstanding invoices within a very short period of time (usually within 72 hours once the facility is established) and the remaining 20% (less applicable fees) is reimbursed when your debtor pays their invoice.