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INVOICE
FACTORING FINANCE
To find out if you need invoice
factoring, ask yourself these questions;
1. Is your business a
new start-up?
2. Is your business growing
rapidly?
3. Do your customers
take too long to pay you?
4. Do you want to expand
your business, but don’t have enough cash?
If the answer is yes to any of
these and you deal in business-to-business marketplaces,
then you need invoice factoring. Here is how
it works.
· Your business
performs a service or provides a product to a client.
· You raise an
invoice and send it to the invoice factor.
· The invoice
factor pays you up to 80% of the value usually within 24 hours.
· The invoice
factor runs your sales ledger, collects the money, deducts a
small fee and passes the balance to you.
Sticking with my philosophy of
the only way to appeal to businesses is to make them money,
save them money or save them time; I decided to link myself
to a fantastic independent factoring company, based in central
Glasgow.
Summary of client benefits
· You make money
by having your invoices paid in hours not weeks or
months
· You make money
by investing your increased cashflow in your business, perhaps
generating new sales.
· You deal with
experienced professionals who have been in this business
for three decades
· You don’t
waste time chasing payment of your invoices
· You save money
by not needing credit controllers
· You don’t
exhaust your line of credit with the bank as they give
you a new and independent line of credit
· You deal with
friendly people focussed to your needs and supreme
customer service
· You save time
as they can make decisions quickly
. You improve profitability
by them providing funds at a lower cost than bank loans or overdrafts
. You save time
by letting them manage your sales ledger
. You save money
by reducing your borrowings and overdraft charges by them factoring
your invoices and forwarding you most of the money owed when
you issue the invoice.
. You save money as
having additional cash to spend means you can often get better
terms from your suppliers.
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