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Overview
Factoring is basically a way of providing cash to your
business without any time delay from issuing invoices,
as well as sales ledger and collection services.
For many small businesses, outstanding or unpaid invoices
are their largest asset, but most companies tend to
struggle with finding the resources and information
systems to effectively and efficiently collect the outstanding
invoices. Factoring can be a very effective alternative
to transfer the debt collection and ledger management
to a factor, who will then almost immediately offer
cash advances with the issuance of an invoice. This
cash can then be used as and how you need to, to clear
some of your debt or to help expand your business.
Although this industry is relatively unknown, over
£60 billion turnover was factored last year, making
it a very large industry. Most factoring companies exist
as divisions within most commercial banks, as divisions
of large financial institutions, as small to mid-sized
independently owned companies and of course, individually
offered services.
Section Guide:
- This section will tell you everything
you need to know when it comes to thinking using factoring
services.
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Is factoring really the right method, or may you benefit
more from Invoice Discounting? Read this section to
find out.
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There are many plus points when using factoring services,
this section will tell you what they are, and why
they are an advantage to you.
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There can be points to look out for when considering
using factoring services, check this page out to find
the disadvantages.
- By keeping your eyes wide
open, you can avoid some of the pitfalls when using
factoring services, this section will tell you what
to look for.
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Any further questions? Browse through this page to
have them answered.
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A quick guide to all of the terms and words often
associated with factoring, and will help to find the
meaning behind the sometimes complicated wording.
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Invoice
Factoring Guide
