Business factoring and invoice financing

ith Simply Business, you can compare quotes from the UK's leading factoring and invoice discounting companies instantly. Those services are available to all limited companies or sole traders/partnerships from new start to multi-million pound turnover. Business factoring and invoice financing provide suitable funding to manage your company acquisitions and refinancing. They are a suitable financing method for companies with rapid growth models, companies who are experiencing financial difficulties, or companies with seasonal sales cycles, affecting cash flow.

Invoice discounting

Typically less than the cost of an overdraft, Invoice Discounting is a fully confidential service that offers flexible funding that grows in line with your business. Bad Debt Protection is also available, offering you peace of mind against any bad debts.

• Length of a standard invoice financing contract
  12 months is the usual length of a contract, with a 1-3 month notice period. Some companies will offer you a 3 or 6 month trial to see if the invoice finance service is a good fit for your business.
  

• Only selected invoices go through the invoice discounting process
  Invoice Discounting contracts list excluded invoices specifically so there needs to be a demonstrable difference between included and excluded invoices.

• Invoice discounting and confidentiality
  Over 40,000 businesses in the UK use invoice finance and growth in the sector usually runs into double digits year on year. Invoice finance is a well established and cost effective alternative to a traditional overdraft. All invoice discounting services are fully confidential so your customers will not be aware that you are using this.
  

Factoring your receivables

Factoring is the process of purchasing commercial receivables (invoices) from a business at a discount.

• How long before you get cash for your receivables
  Money can be in your account in less than a week from the initial meeting.
  

• Only selected invoices can go through the factoring process
  Factoring contracts specifically list excluded invoices, so there needs to be a demonstrable difference between invoices that require factoring and those that do not. Sales to associated companies, contra accounts and cash/credit card sales are automatically excluded.
  

• Collection process of your receivables through factoring
  Every day an invoice is past its due date the risk increases to you that your customer will default on payment. It is in the factoring companies' interest, as well as your own, to encourage invoices to be paid on time. Factoring companies earn more money the better you do, so it is in their interest to help you grow your business.