What Is Invoice Factoring ?
- Invoice factoring is a financial service that releases a large amount (up to 90%) of the value of your unpaid invoices as soon as they are issued to customers, making for instantaneous payments.
- The service includes payment collection, carried out by a highly trained credit management team who ensure the smoothest of customer relations.
- Great service for small businesses, who do not have in-house finance, and for larger business-to-business companies, who have to deal with a large amount of invoices.
How Does Invoice Factoring Work?
- You raise an invoice and your invoice factoring company pays you as much as 80 or 90 percent of the total value.
- The expert credit management team collect your payments directly from your customers.
- Once the total payment is collected the company pays you the remainder of the money.
- You pay them a small fee for the service, agreed upon beforehand.
Why Use Invoice Factoring Services?
- Instant access to working capital. You will never be left waiting for payments again!
- Saves time, energy, and resources, so you can concentrate on managing your business.
- Your customer relations are in expert care as the company will chase up payments in a professional and friendly manner.
- With invoice factoring you can eliminate the risk of customer insolvency by also credit checking customers.