Is your business struggling due to lengthy waiting times for payment from customers? Chances are you are one of many; lengthy payments have plagued many businesses for years and can even play a part in their closure or downsizing.
Commonly a business in the B2B sector will be dealing with payment from customers in the form of invoices. This is where problems can occur as an invoice is a promise of payment over an agreed period of time. This long wait, can be anywhere form 30 – 90 days which is never ideal for the business that is owed payment. If you are one such business, there are funding options that can help you through these issues.
What is Factoring?
One funding option that your business might be considering is Factoring. Factoring solutions are part of the Invoice Finance Family; this system is a great way to release funds you may have tied up in invoices hassle free.
Factoring works by you raising and invoice with your customer, the invoice will have a notice on it which will inform your customer to pay your lender directly. After the invoice has been raised you will receive funds normally within a 24 hour period and the lender will be in charge of the debt collection process. This allows you focus 100% on your business without worrying about chasing your customer up for payment.
This system of cash flow funding is the first choice for many businesses, its benefits can include.
- Flexibility – The factoring process means that as you company grows, so does the amount of funding available to you
- Little or no personal security is needed – As the invoices are used as security against which funds can be borrowed this means that there is no need for you to offer any sort of personal security to secure funds.
- Financial security – Factoring allows your businesses cash flow to be more regular and therefore your company’s finances are less likely to suffer from issues such as late payment.
- Expertise – Most Factoring companies have a wealth of knowledge when it comes to funding businesses and financial solutions. This knowledge could help your business understand what options are the best for you specifically.
Who are Factoring UK?
Factoring UK are a financial brokerage that is dedicated to providing businesses with tailor made financial solutions. We have a team of experts that have years of experience in helping businesses find the perfect funding solutions. We work with over 30 of the UK’s leading lenders including lenders such as Lloyds, Hitachi and Bibby financial services. If you would like to find out more please get in touch with us on 0845 017 7524 or you can visit our website here.