invoice factoring
If you have to wait for customers to pay for your services or products invoice factoring is a way to get cash released quicker into your business…
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invoice factoring
Get cash from customers quicker...
Invoice factoring (also known as debt factoring) is where the funder takes control of your sales ledger and lends against your customer invoices.
This means that you will receive most of the invoice value (usually up to 90%, minus a lender fee) immediately, instead of the typical 30-90 days.
Invoice factoring is an alternative to a bank loan, overdraft or credit card, and the amount of finance is usually stated as a percentage of your outstanding debtor book or sales ledger.
Payments will usually go from you customers to the funder so they will be aware that you are using the product.
If you don’t have time to speak to someone, Asset Finance Compared is our online platform that allows you to get a Decision in Principle in 60 seconds, wherever you are.
Call 0115 958 6872, email enquiries@maffinancegroup.co.uk or fill in an enquiry form for further information.
some of the sectors that we work in...
invoice factoring explained...
Invoice factoring is a way for businesses to raise money by selling invoices to a factoring company at a discount.
Factoring usually includes credit control services, and helps companies release cash from their debtor book.
The credit control function in a factoring facility is outsourced, meaning the client has little control over their sales ledger.
The factoring facility is disclosed i.e. your customer will know that you are using a factoring facility.
- You submit details of your invoices to a factoring company to determine if you are eligible for the factoring facility. The invoice factoring company will then assess how risky they feel the loan is and will then give you their quote.
- Once an invoice factoring agreement has been signed, the factor will advance you the money.
- The factor will then commence collection of the invoice with your customers
- Once the invoice has been collected, the factor will pay you the remaining balance of your money, minus their fee
- A quick, safe source of cash flow by financing accounts receivable and releasing working capital tied up in unpaid invoices
- It can lower time spent on administration and chasing late payments since the factor assumes responsibility for collecting the debt and take over the management of your credit control
- Factoring amounts can easily expand and contract with your sales ledger.
- Invoice financing can provide better cash-flow control where there may be different credit terms across your clients and customers
Invoice factoring works well for business owners that require fast funding, have reliable customers that pay their invoices on time, and can afford the fees that come with selling invoices to a third party.
get in touch...
0115 958 6872 and a member of our team will be happy to speak to you.
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