Factoring Services for UK Companies

Factoring is an extremely flexible form of finance, which grows in line with the growth of the business. Sales invoices are forwarded to the factoring company who will immediately advance up to 85% of the invoice value. The balance of funding, less charges, is received once the customer pays. Factoring, confidential factoring or invoice discounting in the UK is now being used by almost 40,000 companies, and these numbers are growing.

In addition, the factoring company manages the sales ledger, issues statements, chases the debts, and collects payments from your customers. Should you require, bad debt protection is also available.

Choosing a factoring company is not a simple process, as with most service industries factoring has its first class companies and its not so first class - as expert, professional factoring brokers we know who can deliver on their promises and ensure that you do not waste money or time on a factoring service that does not meet your requirements.

Many businesses are unsure of the role that factoring should play in their business, they do not know if factoring suits them or if they are better off without it, they don't know which factor is best for their situation and quite often do not know where to start looking. We know the factoring companies that deliver good service and we know which factors suit certain turnovers, sectors and debtor balances.

We can quickly assess what is best for you and apprach factoring companies on your behalf. This service is free.

We have been dealing with UK factoring companies now for many years. Experience has taught us which factors deliver on their promises and those that do not. We know which factors look favourably or negatively upon certain circumstances and we know how they like a request of finance to be packaged.

Basically, this means that when you contact us we ask you such things as your turnover and average debtor balance. On the basis of this discussion we then consider which factoring company would provide you with the best service, we contact them and explain to them your situation. Between us, we then come to an agreement and a factoring services can begin.

What this means is that you get the benefits of our expert knowledge to present your case directly to the factors that are most likely to be of benefit to you.

The charge for your factoring service will depend on a number of things. First of all a factoring service brokered by us will cost no more than if you had gone direct to the same factoring company. The charges you can expect from your factoring provider will differ from company to company, we can explain to you in detail the particualrs of how this cost is calculated if you call us on 0115 9849800, but for general information expect:

Service charge:

Expressed as a percentage of turnover (generally between 0.5% and 3%), the actual charge will be determined by the workload involved i.e. the number of customers, the number of invoices raised, etc. There will often be a minimum annual charge imposed.

Discount charge:

This is the cost of borrowing money, expressed as a percentage over bank base rate. The rate charged usually varies between 1.5% and 3.5% over base.

In this type of factoring, sales ledger management is undertaken in the client’s name, with customers being totally unaware of any third party involvement.

Offered by only a few factoring companies, this is a full factoring facility, with the credit control being operated by a credit controller employed by the factor at the factor’s premises. Confidential factoring can help you improve your cash flow by providing an immediate injection of cash against your outstanding invoices.

As your business grows so does the amount of funding available to you. In addition to the cash that we provide, we can also save you valuable management time.

A confidential factoring service will chase and collect outstanding invoice payments from your customers in your name, ensuring that your time is not taken up by overdue payments. Statements which will carry your logo, telephone all your customers in your name will be sent out, and we will collect payments for you and maintain detailed accounts of your transactions.

All correspondence is generated on the client’s stationery.

Funds are advanced against sales invoices in the same manner as a standard factoring facility (usually up to 85% of the invoice value), with the remainder available when the customer pays.