Factoring
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Factoring
Factoring is a way of raising money against your outstanding ledger.
Factoring can insure your debtors so if they go bust as long as you have a limit against them, your outstanding balance can be covered by insurance.
Call for Factoring Services
Fund Your Business Today – Call 0333 772 1558 to release funds tied up in your invoices
About Factoring
Factoring is a way of raising money against your outstanding ledger. The process works as follows:
- Deliver your goods or service
- Send your invoice to the finance company and your customer
- Receive up to 90% of the invoice value from your chosen finance company
- Your customer pays the invoice 30-60-90 days later (as normal)
- The finance company pay you back the remaining 10-20% of the invoice minus their fees (Typically less than 2%)
About Factoring
Factoring is a way of raising money against your outstanding ledger. The process works as follows:
- Deliver your goods or service
- Send your invoice to the finance company and your customer
- Receive up to 90% of the invoice value from your chosen finance company
- Your customer pays the invoice 30-60-90 days later (as normal)
- The finance company pay you back the remaining 10-20% of the invoice minus their fees (Typically less than 2%)
Bad Debt Protection (BDP)
BDP can insure your debtors so if they go bust as long as you have a limit against them, your outstanding balance can be covered by insurance. This typically costs around 1% of turnover. Can be lower or higher depending on turnover, but the above is a good average.
- Apply for a limit for any new or existing customers
- The insurer will give you a certain limit to work within
- If you trade within the limits and the client goes bust you will be covered by the limit they set.
