There is a lot to do for a small business owner; staff needs to be paid, operations have to be run, and the escalation of customer orders has to be managed concurrently. A unique challenge dealt with by small businesses is the ability to maintain a healthy cash flow system. When clients slow or delay payments, the entire operation comes under duress. This issue is where small business factoring comes in, and at Simply Factoring Brokers, we ensure that the process is straightforward, quick, and efficient.
What is Invoice Factoring?
As the word suggests, small business factoring or invoice factoring is defined as a financial remedy to providing businesses with stable cash flow by unlocking the potential within two unpaid invoices, rather than waiting for customers to pay invoices. It does provide the option to most of the invoice value to be paid beforehand.
How It Works
- Businesses provide services to customers,
- Customers are invoiced and copy of invoice is sent to the factoring provider.
- A large percentage of funds equivalent to the invoice amount is provided by the factoring company (roughly between 70 to 90% premiums) along with the current pay marked system.
- A small fee is deducted from the remaining balance which is released to you after receiving payment for the invoice.
Factoring does not operate like a loan; therefore, no debt repayment is needed. It only serves as an immediate source of working capital that is realized by selling accounts receivable.
Why Small Businesses Choose Factoring
For small businesses, having dependable cash flow can be a matter of survival. Unlike bank loans which come with heaps of paperwork, credit score evaluation, and lengthy approval durations, factoring is readily available. Tons of flexibility and speed are added benefits.
- Immediate Access to Working Capital
Factoring provides immediate access to cash. Consequently, it helps cover other expenses such as paying staff, purchasing inventory, or accepting new contracts. This allows businesses to capitalize on opportunities right when they arise.
- No Collateral is Needed
Invoice factoring does not follow the same norms as loans which require collateral in form of assets. Instead, it relies on the credit worthiness of your clients. Hence, there is no need for company assets or credit history.
- Business Growth without Limitations
Consistent cash flow enables smaller businesses to grow without the stress of dealing with delayed payments. This means that you can invest freely into marketing or boost your workforce or even acquire new equipment.
- Streamlined Operations
A number of factoring providers, including Simply Factoring Brokers, offer credit control and collections which helps save time so you can efficiently focus on business operations.
- Suitable for Various Industries
From manufacturing and logistics to recruitment and construction, factoring is a versatile solution that can accommodate across the board.
How Simply Factoring Brokers Supports Your Business
We appreciate that all small businesses have specific requirements. For this reason, we have partnered with a number of UK factoring companies so we can offer a favorable deal to your business irrespective of its size or industry.
- Expert Matching Service
We have developed a deep understanding of your cash flow needs and business structure. So, we ensure that you qualify with the terms and services that are optimal for your cash flow requirements.
- Fast, Free, and Simple Process
It is simple and fast to get started and there are no fees associated with using our broker services. Our team is available for guidance throughout the process at no obligation.
- Factoring Solutions with Flexibility
Our funding options, from recourse and non-recourse factoring to confidential invoice discounting, can be tailored to suit your preferences regarding control, risk tolerance, and client relationships.
- Transparent Consultation and Guidance
We pride ourselves in transparent communication and provide unreserved professional advice. Our team walks you through every step of the process, whether you are a first-time factor or switching providers.
- Partnerships for the Long Term
Our assistance doesn’t end at securing funding. We help construct an adaptive financial strategy aligned with your business needs. Our primary focus is to help fuel your growth now and later.
Is Small Business Factoring Appropriate for You?
Factoring is an effective tool, but it is best suited for businesses that:
– Provide goods or services on credit
– Have customer who take some time to pay but are reliable
– Have seasonal money flow
– Want to buy operational funds at a quicker rate
If all these statements apply to you, then factoring could be the burden-free financial support that fosters your growth, without the dread of debt from conventional means.
Simply Factoring Brokers has partnered with numerous smalls businesses to enable financing strategies that unlock growth potential. Apart from financing, our clients receive enhanced clarity regarding their finances, a streamlined financial management framework, and peace of mind.
Shed The Burden of Waiting for Cash
As a small business owner, waiting for payments can be troubling. With factoring services at Simply Factoring Brokers, your invoices can be converted into immediate cash allowing you to focus on business operations without worrying about capital.
Our aim is to ensure that small businesses seamlessly access the value they have already earned. With Simply Factoring Brokers, there are no complex processes or long waiting periods. Engage with a dedicated team that truly understands the stress small businesses face.
Simply Factoring Brokers – Flexible finance options tailored for your business needs