Weighing scales - factoring vs costs

Fabulous Factoring Vs Expensive Loans

Posted: 9th May 2018

Did you know? SME businesses, such as yours, have options regarding financing and protecting your cashflow, over and above traditional bank loans and overdrafts!

Here at Calverton Finance, we often refer to this mind set as the ‘barnacle or butterfly’ effect.  A butterfly will realise that there’s a whole lot more to a fluid cashflow than restrictive bank loans – spreading their wings and flying towards dedicated finance companies for tailored, suitable cashflow solutions. Barnacles, on the other hand, stay with what they know, afraid of change, afraid of anything seemingly ‘new’.  

Cashflow is the lifeblood of your business. Keeping it fluid and flowing is crucial to its success. In times of financial need, many SME businesses think a bank loan or overdraft is their only answer. But it is not.

There is a far easier, flexible, effective finance solution – invoice factoring.

Invoice factoring grows with your businesses. Unlike a loan, it doesn’t restrict you to borrowing a pre-determined amount. In fact, you aren’t borrowing at all, you are effectively getting paid early. 

Many businesses do not want to take on additional debt, they simply want to fund when necessary – factoring does just that. Funds monies owed until they are paid.

Invoice factoring unlocks monies tied up in late paying customers – even though your terms might be 30 days, how often do you find yourself still not paid until 60, even 90 days.

Invoice factoring advances you monies your business is actually owed – paying up to 90%, within 24hrs, on issued invoices (with the balance paid once your clients have settled their payment).

Unlike loans, there are no personal assets to secure. As you aren’t borrowing, there are no set up fees, or early redemption charges.

Unlike loans, the invoice factoring facility expands with your business – the more invoices you issue, the more the facility grows. There’s no risk of ‘running’ out of your loan money and needing to apply for more.

Invoice factoring supports your business’s progression. It’s support enables a business to expand. Provides cashflow to invest. What’s more, our clients found that their businesses have grown by at least 10% within the first 12 months thanks to invoice factoring.

Loans and overdrafts are a costly and inefficient way in which to support your cashflow. With invoice factoring, through Calverton Finance, you’ll find our charges very reasonable. Not to mention our customer service is outstanding – so much so, our client retention is one of the highest in the industry; with 92% of our customers recommending us!

Arranging your factoring solution couldn’t be easier either! Unlike bank loans and overdrafts, there are no unnecessary hoops to jump through, endless forms to fill in, no hierarchy to persuade or impress.  In fact, because we understand all too well, that time is of the essence, we’ll have your factoring facility set up and operational within 10 to 14 days.

So, what are you waiting for? Contact us today for a no obligation discussion on how invoice factoring is the ideal cashflow finance fit to your business.