Factoring

Factoring can be an excellent option for both newer growing businesses and longer established ones looking for cash to grow the business or just meet day to day needs and unlike a working capital overdraft, your factoring facility grows with you.

How does invoice factoring work?

You raise an invoice and send it to your customer.

You send a copy of the invoice to the factoring company for them to check.

Providing they are happy with this up to 90% of the invoice value is then made available to you straight away.

The factoring company chases up your customer and gets payment from them, rather than you having to do this.

Once the customer has paid and this is cleared, the balance less factoring charges is sent to you.

In the meantime you can concentrate on growing your business.

What are the benefits of invoice factoring?

With bank overdrafts on the decline, invoice factoring is seen by many businesses, especially those which are newer as the quickest and easiest way of freeing up money for growth or day to day cash flow needs.

Improved cash flow – you won’t have to wait for 90 days for payment
Up to 90% of invoice value available.

You save time having to chase up customers for payment.

Releases cash for growth or expansion plans.

Provides support for seasonal fluctuations or unforeseen peaks in demand.

Quick access to finance – it is possible to get funding in place in less than 7 days
Online access

No need to change day to day banking

No need to provide direct security over your home or other property assets

It can include an option to add in bad debt protection to protect you from failing businesses

To find out more call Access on 01744 333001.