Start Your Business Magazine  The Jan/Feb 2006 edition of the 'Start Your Business' magazine will feature an article on factoring titled 'Factoring - The Benefits for a Small Business' [28.12.05] [more ..] UK Factoring Factoring in the UK continues to grow in popularity as a front line tool in providing the cash flow for growing a business. [23.12.05] [more ..] Ultimate launch 'ultimate CASH' Aimed at recruitment and employment agencies this service is offering full back office support in addition to the standard factoring facility [12.05.05] [more ..] Confidential Factoring from Hampshire Trust Factors Hampshire Trust Factors Ltd have announced a new product line offering a confidential factoring facility where they will administer your sales ledger and conduct the credit control functions on a confidential basis. [08.05.05] [more ..]

What is factoring and how does it work? What are the benefits and what are the costs? How will factoring benefit my business? What do I need to do to get a factoring facility? Will it allow my business to grow by improving my cash flow?

These are some of the many questions that a business may wish to answer before making an approach to a factoring company in respect of obtaining a factoring facility. Where should they look for the answers?

That is where we come in. Our site is designed to give an insight into factoring and how it can provide increased cash flow by releasing working capital tied-up in trade debts. Additionally we are always ready to answer any further questions sent to us by e-mail or you can call us on our UK FREEPHONE 0800 328 9784.

FACTORING SERVICES

The three major services provided by factoring are: a) The service element – the factor takes over the sales ledger and credit control functions being responsible for the collection of outstanding invoices as they fall due for payment. b) The finance element – as invoices are raised they are assigned to the factoring company who will then make an initial payment against each invoice at an agreed percentage of the value of that invoice – normally 80% but can be as high as 85% or even 90% in certain industries such as recruitment. c) Bad Debt Protection – this can be added to the facility if required and can provide 100% protection on each customer subject to credit limits set by the factor.

EXPORT FACTORING

Factoring can provide funding against export invoices and provide a collection service from most parts of the World by using either sister or associated factoring compaines who are members of an international factoring chain. The UK factor will do the funding whilst the factoring company based in the country to which you export will be responsible for the collection.

FACTORING COMPANY

Let us help you find the right factoring company. There are over 50 factoring companies operating in the UK ranging from the large bank owned factors to the smaller independent companies. With our experience we can help you find the right factoring company to meet your needs allowing you to grow your business. Remember finance from factoring is expressed as a percentage of your outstanding invoices so as you grow so does the funding available from factoring. No going back to your bank manager to review overdraft limits - simply keep selling and let the factor finance the resultant invoices providing you with the cash flow to grow some more.

INVOICE FACTORING

Invoice factoring is a more accurate name for 'factoring' as it is the invoice which is factored. This is by way of assignment of the invoice from the supplier to the factor normally with a notice of assignment printed on the invoice advising the customer of the arrangement and instructing them to make payment direct to the factor when the invoice becomes due for payment. The factor is responsible for settlement of the debt with the supplier and will do this by way of an initial payment at an agreed percentage rate, the remaining percentage to be paid after receipt of customer payment.

FACTORING TERMINOLOGY

We can cut through the jargon giving simple explanation on what factoring can and cannot do for your business. Factoring is full of its own terminology and to help you understand some of the words and phrases used please click the 'more' button for our FACTORING TERMINOLOGY page or you can contact us either by E-MAIL:                Talk2us@factoring.uk.com or call us on our UK Freephone 0800 328 9784