INVOICE FACTORING

Invoice Factoring is the selling of your outstanding invoices to a financing or factoring company, providing you with significant cashflow assistance for your business.

Quite often, small business funding options are limited, with loans, overdrafts and other credit expired, the growth of your business is restricted by cash flow shortages. This is where organisations can turn to Invoice Factoring.

Invoice Factoring frees up liquid cash tied up in unpaid invoices. The different solutions offered by Skipton Business Finance are called Recourse and Non-Recourse Factoring. Non-Recourse allows coverage for bad debt solutions, where as businesses have to chase debtors should they not pay using a Recourse solution.

There are many benefits which include:

More Time Managing Your Business
Because your financing company is looking after your accounts receivable, this frees up more time to effectively manage your company.

Working Capital is Freed Up
Rather than having cash tied up in credit in customer invoices, you can have up to 90% of that cash straight away, costing only a small fee for the priviledge. You then receive the remainder when the customer pays in full.

Reduce Administration Overheads
As the factor takes care of all the invoicing and with Non-Recourse, also takes the bad-debtors on, this reduces your administration cost in the accounts receivable department. Although the fee is higher for a full-service non-recourse solution, the administration savings can far outway the cost.

Invoice Factoring is quick and easy to set up with Skipton Business Finance. We can set up a deal within 5 working days to provide you with up to 90% of each invoice as you produce it.