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Invoice Factoring And Account Receivable Factoring
At Strategy Consulting we have a strong knowledge of the players in the invoice factoring market. We know who is hungry for business and who are specialists in certain industries so we can find you the best invoice factoring deal available in the UK. Our broking service puts you in direct touch with UK invoice factors and account receivable factors who may be able to assist your business.
Our service is free of charge!
What Is Invoice Factoring?
Invoice factoring and account receivable factoring (also known as debtor finance) can dramatically improve your cash flow by releasing money as soon as you have completed an order and raised an invoice rather than having to wait for your customer to pay. This makes them ideal for funding growth. Because it's linked to sales, invoice factoring or invoice discounting is ideal if your business does not have the financial track record or security available to negotiate sufficient overdraft facilities.
A key advantage is flexibility. The amount you can borrow grows in line with sales and it is often possible for you to repay bank facilities and release previously pledged security.
Typically, when invoice factoring is set up you can borrow about 80% of the value of your approved invoices less than 90-120 days old. Thereafter, cash will be made available against invoices on a daily basis with the remaining 20%, less charges, once the value of the invoice has been collected. Once the system is established, the level of advance you receive against invoices depends on a number of issues, but can rise as high as 100%.
Once in place, there is no limit to the amount you can borrow using invoice factoring as the finance is linked directly to sales. This is in sharp contrast to bank overdrafts, which require regular re-negotiation and arrangement fees.
The cost of invoice factoring is normally up to 3% over base rate for the money borrowed, together with a service charge linked to gross turnover of at least 0.5%. This charge depends upon the level of annual sales, the number of invoices raised and how many live accounts are on the sales ledger. Small additional charges are often made for extra services such as credit insurance.
Get in touch with us today to find out if we can help your business, free of charge, to find top quality invoice factoring services at the best prices currently available.