What is Invoice Factoring?
For many companies the problem that they encounter the most relates to cashflow. Invoice factoring is a service that can be provided by an external company, such as First4Commercial, to help fund your cashflow by acquiring your invoices at a discount.
Invoice factoring is an enticing solution to companies with cashflow problems and also goes under the names ‘asset based lending’, ‘debt factoring’, and ‘invoice finance’.
Invoice factoring is a really simple process. If you are in need of some funds to control cashflow and have outstanding invoices, we can manage your sales ledger and credit control on your behalf. We will offer an advance a percentage of the funds linked to the invoices to help you with your cashflow problems. Once the customer has paid, we will make the remaining balance available to you with a small fee retained.
The major advantage to invoice factoring is that it allows you to free up cash that is tied to unpaid invoices, making financial management of your company a lot easier. You can focus on what makes your company tick and allow us to look after your credit control and invoice factoring, meaning that you don’t have to chase clients for payment, or worry about cashflow in the immediate future.
Contact our specialist team at First4Commercial today and we’ll be happy to discuss our invoice factoring service and how it can assist your business in managing cashflow effectively and not having to worry about chasing clients for unpaid invoices.