What is factoring & cash management
Factoring is the term given to having your invoices turned into cash immediately. Thereby benefiting your cash flow. Normally you can receive upto 85% of the value of an invoice. With the remaining 15% paid less expenses once the finance company has received payment from your customer.
How will factoring benefit my business ?
1) Your business has access to an ongoing supply of cash linked to your sales so as your business grows so does the amount of funding available to you.
2) Factoring saves you time in processing bills. Lets you get on with driving the business forward.
3) With factoring You have cash to pay suppliers earlier. Thereby negociating discounts.
4) Factoring brings you a certain amount of certainty.
5) You have one point of contact when processing bills.
Confidential Factoring
Confidential factoring is where a finance company provides a confidential sales ledger management service where they chase and collect outstanding invoice payments from your customers in your name. They will prepare and send out statements which will carry your logo, telephone all your customers in your name, collect payments for you and maintain professional and detailed accounts of your transactions. Your customers do not know that their bills have been factored.
Non-Recourse Factoring
Non-Recourse Factoring is where a finance company chases your customers in their name.
Export Factoring
Export factoring will remove the hassle of dealing with overseas customers, by chasing and collecting outstanding invoice payment from your overseas customers. A finance company will either use an in house multilingual team or use a worldwide network of associated factoring companies.
Cash Management Factoring - how much does It cost?
Factoring services are tailored to your business so the fees will depend upon your specific needs.
There are two types of fee. The first is the cost of the money you use, which is extremely competitive when compared with other forms of finance. The second is a service fee.
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Useful Resources:-
Factoring - 21st Capital Corporation is an Accounts Receivable Finance Company specializing in Factoring. The only paperless online invoicing system. Fastest invoice funding.
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