Factoring

In a similar way to Invoice Discounting, Factoring can benefit companies which trade on credit terms by quickly releasing up to 90% of their sales ledger value, shortly after the invoice has been issued, to improve cash flow and aid growth.

The main difference with Factoring is that the financier also provides a dedicated sales ledger management service. This has the advantage of removing the time and costs associated with chasing debtors, so that resources can be concentrated on what matters most – your business.

Factoring is highly flexible and can be tailored to the individual needs of a business. The most basic Factoring facility is Recourse Factoring, which releases working capital against the value of the sales ledger for a recourse period of up to 150 days.

More specialist Factoring solutions are also available, and include Non-Recourse Factoring, (which safeguards against non-payment or protracted default) Confidential Factoring, (which works on a non-disclosed basis)  and Export Factoring, (which facilitates overseas trade).