What are the requirements for factoring?

Businesses do need to meet some  requirements in order to be considered for a factoring contract . One of the most important criteria is B2B trading (trading with other businesses rather than an end user) and that invoices raised for goods or services need to be for a reasonable amount. Typically a minimum turnover of £100,000 is also required (although some factors will consider smaller businesses or start-ups). Other requirements usually include being able to prove that debts can be collected within a practical timescale, a minimum or maximum amount of invoices a month and credit terms that meet industry guidelines.