Single Debtor and Single invoice finance is also available.Īny business providing goods or services to other businesses on credit may be eligible to apply for a factoring facility.įor further information and advice, contact us today. It accepts specified risks around the debtor’s failure to pay and because of this, non-recourse factoring will be more expensive than recourse factoring. Non-recourse factoring is where the factor takes on the bad debt risk. There are also different options to consider when choosing the right factoring facility for you Ĭonfidential factoring is a flexible funding solution for businesses which offers the cash advance and credit control aspects of a factoring facility combined with the confidentiality of invoice discounting, so the factoring company approaches your customer using your company name. This charge is usually a percentage of the annual turnover although for businesses with smaller turnover it is possible to get this for a nominal monthly fixed fee. The second element is the cost of providing and administering the factoring facility and for the provision of the credit control. This is typically vary similar to interest rate charged by a bank for an overdraft however it does vary from finance company to finance company If youre sitting on a pile of valuable invoices, these top-rated Factoring and Invoice Discounting services in Manchester on can help boost your. Firstly, the interest element for the actual amount of money borrowed. There are two headline charges associated with invoice factoring facilities and some secondary costs which should be studied in the small print. Once the invoice is paid by your customer, charges are deducted, and the factoring company pays you any remaining balance of the invoice value. The factoring company will immediately advance you the pre-agreed percentage value, typically 70-90% of the invoice (although some factoring companies advance 100%). You deliver goods or services to your client and notify the factoring company of the work performed providing a copy of the raised invoice. Invoice Factoring is very straight forward. Factoring provides a working capital facility that grows with your business but also provides a credit control function as the factoring company collects unpaid invoices on your behalf. Invoice factoring facilities provide finance against unpaid invoices with the additional advantage of a full collections service. Revolving credit that grows with your business.
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