If you’ve tried everything possible to get some extra funding for your business, you may feel that you have exhausted all of your options. It may not be a case of funding but you need some financial capital up front that enables you to pay your staff, expand, purchase machinery, purchase vehicles and take on new staff.
Let 2012 be the year that you discover the incredible alternative funding solution-Factoring.
You may have never heard about Factoring, or you have but know little about it, that’s where the team at Select Factoring step in with all our knowledge and years of expertise in this particular area.
Factoring is based on the capital tied up in your businesses invoices. Normally invoices are sent out and you might not see the payments from 30 to 90 days, which is a bit of a drag if you need to purchase more materials or other items.
Factoring releases the capital tied up in your invoices and rather having to wait up to 90 days you can have the money in your account within 24 hours.
Now you may be wary of the cost of Factoring, compared to the interest on a business loan, factoring is a tiny percentage and the cost is taken from the final payments of your invoices.
It’s a very flexible form of business funding, you can choose to use the capital in all or simply a few of your invoices, you can also choose to continue chasing your clients or allowing the factoring lender to chase them for you. Generally as a rule you will receive around 85% of the capital of the invoices in the first instance, then when the final payments have been paid by your clients you will receive the rest of the invoice amount minus a small cost for using a Factoring Lender.