Invoice Factoring – what it can do for your business

Just imagine how much your business could achieve if your staff didn't have to chase late payments and pursue legal actions.
Factoring is a simple solution that removes the cost and administration of running your own sales ledger – instead, your customers deal with the lender best suited to your business.

With up to 85% of the value of each invoice available almost immediately, you can put your income to work now – not later.

Invoice Factoring

A better way to manage your debt

A factoring facility will mean your business is still very much in control. The lender will work with you to agree how (and how often) they will pursue late payers.

Reduce your administration

When you need to issue an invoice, drawdown payments or run invoicing reports, most lenders will provide you with an intranet system that handles your day-to-day transactions.

Profile of Debt

Most lenders will look for a sale ledger with a good spread of debtors, meaning that the risk is mitigated via more than 20 buyers of your products / services. All lenders will look at the “spread of debt” & refer to this as “concentration”.

This will be depending on the level of concentration that the lenders will set trading limits per any one buyer.

So a good spread of debtors is favourable but CBF have access to lenders that will lend on all mixes of debtors.

Type of Facility

Factoring will be offered in two forms “recourse & Non recourse”. This is where the lender under “recourse will factor the debt for a period from 90-120 days, thereafter this period, if the debt hasn’t paid, the lender will take the cash back from “current & valid invoices” or what the lender will call “availability”. Non- recourse is where your debtors are insured, either via the lender with a cost from 0.5 -1% of turnover or where you can via CBF look for an alternative cost per the cover

What company is best suited to Factoring

New start
Companies that may have a poor financial track record
Poor credit control history
Lack of accountancy systems

Enquire about Invoice Factoring – We will not request full details until we have contacted you with the best UK quote for Invoice Factoring / Discounting, so please give us a name and contact telephone number and we will have one of our Invoice Factoring / Discounting Specialists contact you in confidence.

Case Study

CBF immediately advised us that business model would be deemed as not being “plain vanilla” in the world of funding. The majority of our business is selling our products overseas, which our bankers would exclude from funding. The issues in hand were that our overseas buyers increased their purchasing two fold; the ramifications on cash flow were immense. CBF introduced a global financier & even restructured our credit insurance to give us more comfort.

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