Debt factoring and invoice discounting (also known as debtor finance) is a method of raising funds against an invoice as soon as it is raised rather than waiting the 30/60/90/120 days for the customer to pay. Using an invoice factoring facility can dramatically improve your cash flow by releasing money as early in the process as possible after the order has been completed.
Because invoice finance is linked to sales then the facility is ideal for funding growth by providing immediate working capital.
A key advantage of factoring is flexibility. The amount you can borrow grows in line with sales and it is often possible for you to repay bank facilities and release previously pledged security.
Account Receivables Factoring Explained - Learn all the details and find out if account receivables factoring is suitable for your current business situation.
Using A Factoring Service: The Benefits And Costs - Useful information on all the benefits and costs of using a factoring service and how to find the best deal for you.
Recourse And Non-Recourse Factoring - Find out about the important difference between these two types of factoring and learn the pitfalls to avoid when choosing a factoring company.
Export Factoring - Information on the details of export factoring and how to get in touch with reliable and competitive invoice factoring firms that offer export factoring services.
At Strategy Consulting, we have a wide knowledge of the players in the factoring service market. We know who is hungry for business and who the specialists in certain industries are. Our FREE factoring broker service puts you in direct touch with UK invoice factoring companies who may be able to assist your business.
Listen to John Courtney's podcast on business funding options which covers all aspects of raising funding for a new start or a growing business. You will find out how to go about raising business angels funding and debt funding through the small firms loan guarantee scheme plus other tools that can release working capital and improve your cash flow such as factoring, trade finance and asset finance.
JOHN COURTNEY A.I.M.C., M.A.B.S., MInstD, is Chairman of Strategy Consulting Limited and has assisted many clients in getting funding.
(This podcast was recorded recently for expertsonline.tv)
For further information about invoice discounting see: