If your business still runs and needs cash coming in then no. Think about it, you may have invoices that you would really like paid before the Christmas period, but if your payment terms with your clients are 60 or 90 days that isn’t going to happen. So what do you do? The team at Select Factoring know the answer, simply turn to a factoring lender.
Using the capital tied up invoices, you simply send out your invoices to clients and contact a factoring lender to inform them who much the invoices are worth. You could have 85% of the value of the invoices in your bank account the next day. Sound too good to be true? Well, invoice financing is a growing trend and many SME’s are turning to this way of funding to gain capital so they can buy materials, pay staff, employ new staff, purchase fleets and generally carry on trading and grow. Plus if your staff are looking forward to the annual Christmas Party, you’re going to have to find some funding from somewhere to pay for the bar tab. So, factoring is the solution, its quick, its simple and its a minor cost compared to a business bank loan.
Once you have informed the factoring lender about your invoices you have a couple of options, you can continue to chase payments from your clients or the factoring lender will do this for you, taking control of the situation and leaving you to use the capital for your business. Many companies are turning to this method rather than trudging to the banks with their fingers crossed.
Don’t be left without this Christmas, take advantage of factoring, then once Christmas is over and its time for clients to pay up, you’ll receive the remainder of your payments minus a small fee for using the factoring lender.