How factoring works

A factoring facility is simple and easy to use. There are 3 stages:

Stage 1: We get the necessary information to make you an offer

You complete our application form, and provide required documentation. We visit you to perform our due diligence, usually within 48 hours. This involves checking the credit quality of your customers, checking anything unique to your industry or transactions, and determining your true funding needs. We send you an offer document. Once you sign an agreement the facility is ready to go.

Stage 2: We set up the facility normally within 48 hours of your acceptance:

You send us an up to date sales ledger or copies of outstanding invoices and a customer name and address list. We notify your customers that we have entered a financing agreement. We put the invoices onto our system and make available up to 85% of the outstanding balance. You decide how much cash you need and we transfer it same day to your bank account.

Stage 3: Once established, the facility follows four easy steps:

You send your invoices to your customers as normal but with a notice asking them to pay us. You send a summary sheet and a copy of the invoices to us (this can be sent on-line). We then make available up to 85% of the invoice amount You request funds and we transfer them by electronic payment directly into your bank account. When we collect from your customer, we return the balance (e.g. 15%) to you.

If you need cash flow finance you need to get in touch now.

About the Author:

Contact Steve Thatcher a qualified solicitor with Help With Debt (UK) Limited the total debt solutions company. For all further reading see http://www.helpwithdebtuk.com

For personal contact, email sthatcher@helpwithdebtuk.com. If you have any debt problem whatsover either personal or corporate make Steve your first call on 0808 160 5577. All telephone advice is free.