Invoice Factoring Services Buying Guide
Overview
Factoring provides cash to your business with no time
delay from issuing invoices as well as sales ledger and
collection services.
For many SMEs outstanding invoices are their largest asset.
Most SMEs do not have the resources and information systems
to efficiently collect their outstanding invoices.
Factoring can be a smart alternative to transfer the debt
collection and ledger management to a factor and almost
immediately get cash advances with the issuance of an invoice.
The cash can be used to reduce your own debt or for investments
to grow your business.
The industry - although often unknown - is quite large
(over £60 billion turnover was factored last year). Factoring
companies exist as divisions within most commercial banks,
as divisions of large financial institutions, as small to
mid-sized independently owned companies, and as services
offered by individuals.
