Invoicing factoring for funding release

With the economy fully engaged in full steam ahead, many businesses are taking the opportunity to take their offering to the next level. But one of the major barriers to this is cash flow – and this can often be down to late payments from customers; one of the biggest problems facing firms today.

There is one method of financing that can help; invoice factoring or discounting. Invoice factoring involves passing over the debtor book to the organisation providing the service so that they may take over the chasing of debt and help release funding. In the case of discounting, the onus is still on the business to chase the debt but the book is still passed over.

As well as overdrafts or loans – or even equity release – to help a business gain access to much-needed funding, it’s an option worth looking at for some companies. There are costs associated with it, of course, but it can be negated in whole or in part by the fact that the business does not have to have a resource to chase invoices.

Just like any service or lending resource, there will be terms and conditions that must be assessed carefully to ensure there is no unwanted inflexibility or restrictive terms – but it really can be the solution for a growing business experiencing or trying to drive high/fast growth.

Any businesses wanting to find out more about this can get in touch with us. Speak to Tessa on 01827 54944.