Factoring
What is it?
You've won the client, delivered the goods or services,
and issued an invoice. And whilst you believe they're
good for payment, you can't get your hands on the cash
until they deliver.
With factoring, your business invoices effectively
become cleared checks, freeing up the capital for you
to use straight away. You raise and issue your invoices
and the bank advance an agreed pre-payment percentage
to you immediately (up to 90%) and pay you the balance,
less their fee, on receipt from your customer.
The lender ensures those invoices are paid to your
terms.
What's in it for me?
- Linking immediate cash availability to your sales
means your funding availability grows as you grow.
- You can make your financial forecasts confident
in the knowledge they're not dependent on uncertain
payment dates.
- You won't need to hire specialist staff or lose
sleep over unpaid invoices.
- Proficient collection of debts means your customers
see you as the professionals you are.
- Revolving facility means no annual arrangement
fees.
- Additional option of credit protection against
bad debt if a customer fails to pay.
Am I eligible?
Factoring is usually appropriate if:
- You offer trade credit terms and have an annual
turnover between $250k and $10m.
- You're newly established, or have been trading
for years – we don't mind which.
- You'd like to have the uncertainty of invoicing
and receipt taken off your hands.
We've got the widest range of solutions at our finger-tips,
so we can find what's best for you.
So what do I do?
Unlike other finance factoring is secured against
your invoicing and not your home or your business but
you will need a business plan.
Write a business
plan and send it to us and we will ensure that
your business receives the correct financing and
in a way that relieves you of so much administration,
stress and headaches.
- It does not matter what your business does
- It does not matter where your business is
- It does matter that you get the right finance
for your business
Write your business plan and contact us at factoring@finance-4-you.com |
