invoice factoring and invoice finance fast facts represented with a checklist.

Fast Facts about Invoice Finance

Posted: 28th August 2018
If you’re still unsure as to what invoice factoring is, are you eligible for a facility, and how it could affect your business, here are your answers. Also providing information on how it affects your cashflow and what your customers might think.

Factoring is Cost Effective

A small fee is charged to provide the factoring facility. Here at Calverton Finance we offer some of the most competitive rates in the industry. What’s more, factoring grows with your businesses. There is no need to renegotiate the amount you factor; unlike a loan, which can be time consuming and risk you missing out, and inefficiently costly too. Instead, our factoring grows organically as your business expands. 

Factoring Doesn’t Need a Big Credit Score

As invoice factoring is not a loan, an SME does not need to have a faultless credit history to get a facility approved. In fact, the way in which the factoring facility works, it’s actually more about the payment history of your customers, not yours. If you are offering credit terms to your customers and have invoices outstanding, then chances are you are eligible for a facility.

Factoring Is Fast to Set Up

Our invoice factoring facilities are normally set up in around 7 to 10 days, but we can put together a facility in 48 hours if it’s really needed. We do not have hierarchy or hoops to jump through. After our initial meeting, the take on process is fast and efficient, meaning you can have funds advanced on your issued invoices without any delays.

Factoring Is Not Like a Loan

Unlike a loan, you are not borrowing any monies. You are simply being advanced monies that you are owed through your outstanding invoices. We advance up to 90% of the invoice value within 24hours, paying the balance to you after we have collected payment from your customers. This method of finance means you have a fluid cashflow, always. You always have funds. You always have working capital.

Factoring is used by Tens of Thousands of UK Businesses

Over 40,000 businesses in the UK use invoice factoring to manage their cashflow and working capital.

Invoice Factoring Acts as Your Own In-house Credit Control Department

As part of your factoring facility, we, at Calverton Finance, collect payment on your issued invoices on your behalf. Acting as if we were your very own in-house credit control team, we act courteously and respectfully; in fact, we have superb relationships with our clients’ customers. Alternatively, if you prefer for your customers not to know of your factoring agreement, then invoice discounting offers all the benefits of factoring but is confidential and allows you to manage your own credit control. 

Factoring Does Not Require Long Term Commitment

Unlike many other alternative finance options; invoice finance does not require a long term commitment from businesses. Unlike many traditional banking options, where you may be tied to a package for three, four, even five or more years, we can offer short term funding lines if required.

Factoring Offers a Choice of Invoices Factored

Some businesses do not need to factor all their invoices, they simply need to factor selected invoices – to cover seasonal peaks and lows or to cover large ad hoc work. Therefore, our tailored and flexible Selective Invoice Factoring option allows businesses to choose what invoices they factor.

SMEs Make Up 60% of the Private Sector

A stable cashflow, available through invoice factoring, is essential for business growth and development, but also sustaining a sound UK economy.

Late Paying Customers Are Crippling UK Businesses

Despite payment terms being 30 Days, too many customers are paying later and later; with many SMEs seeing regular payments of 60 and 90 days plus. This is crippling many businesses, having a detrimental effect on their cashflow and working capital.

Calverton Finance Help Their Customers Grow Over 13% Each Year

Let us help you with your cashflow and working capital, which allows your business to grow and thrive.

If you have any further queries, please do not hesitate to contact us for a friendly and informal chat; 01908 268888.