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Three reasons to use Invoice Factoring.

Many already know the joys of Invoice Factoring, selective factoring and invoice discounting, if you’ve heard about this mystical way of financing your business, but are not sure about the merits, Select Factoring have the top 3 reasons to choose this way to raising finance through your invoices.

1) Availability. As long as you have invoices you can gain some capital. The difference being is that you can gain it quite quickly, you don’t have to go and charm your bank manager, there are no extortionate fee and basically you don’t have to wait up to 90 days for payment.

2) Speed. You can have the capital from your invoices, from and Factoring lender within 24 hours. Yes, it can be that quick. Thus allows business to continue, pay those bills, pay for machinery, pay for new staff or anything else that demands the funds. You don’t have to wait for a decision from your bank which can be painful. Factoring is a very quick turn around, as long as you and your clients are credit worthy, you should have the money you desire with you in no time

3) Flexibility. There are a few different way’s to go about factoring. Using the funds tied up in invoices you will inform the factoring lender of the invoices you wish to draw the capital from and they will lend you up to 85% of that invoice. You can then, give all of your invoices over to the factoring lender to chase payment, you can give a select few of your invoices to the factoring lender (selective factoring) or you can simply carry on the process of chasing payment yourself, so only you deal with your clients and know exactly where you are in terms of payments (Invoice Discounting). In all respects, when all invoices have been paid by the clients, the factoring lender will transfer the rest of the amount of the invoices minus a small fee.

All in all factoring is a perfect, quick, simple and flexible solution to provide business funding.

 

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