On the basis that most scaffolding companies are working to contract many such businesses wrongly assume that they are not eligible  for a factoring or invoice discounting company. The good news is that one or two invoice finance companies will provide a factoring service.

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Most business understand invoice discounting and most businesses understand full factoring. However confidential factoring maybe available to businesses that require or would prefer a confidential facility.

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When it comes to organising a factoring facility there are basicLly two choices a bNk owned factoring compnay is a decision of the bank but as we know the banks try and be all things to all men And they don’t necessarily five the best service. A independent factoring company is a business set up independently from the banks and they usually specialise in factoring alone and As such their service is second to non.
FActoring is all about adding value in terms of providing the most possible cash against your unpaid invoices. It is also about collecting your cash within 90 days in the most efficient and professional manner.
Therefore cheapest is not always best. There is Absolutely no point going with the cheapest quote if that particular finder cannot get the cash through the door . For example a number of bank operated factoring companies will only telephone your top ten customers and leave the rest to chance or to letter.
At XL Business finAnce we have plenty of experience in pointing our customers in the right direction. We would recommend no more than two or three ompanoes that will best suit your particular requirement. The companies that we recommend will be selected based on your location, turnover, quality of debtor book, length of time trading and profitability. Our recommends will be very similar in terms of business they are looking for but it will come down to personalities as go which one you choose. As soon as you start seeing more than two or three companies they will not all take you seriously and as such you may not end up with the best possible deal.

During the  last week we received an enquiry via our website from a furniture manufacture needing to refinance some existing equipment to provide cash for working capital. Unfortunately the age of the kit meant that the value for refinancing purposes was very low and would nit provide enough cash. On digging a bit deeper it transpires that the customer had been told that they could not use factoring or invoice discounting and as such was struggling for working capital. Businesses which are involved in the construction industry or any other contractual business  obtain payment upon application of work to date rather than by invoice. Whilst non of the high street banks are able to fund such applications the good news is that are one or two factoring companies that can indeed fund these applications. They have their own in house surveyors that have experience in all industries and they can verify that the applications are reasonable and accurate.

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And the winner is! It depends!

Both an invoice discounting and factoring facility will release up to 85% of your unpaid invoices on a revolving credit basis. In theory both facilities will grow as your turnover increases providing you with valuable cash and working capital. In our opinion both are far better than a bank overdraft which is not as flexible and will be capped depending on how profitable or the level of security available.

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There are so many options available when it comes to factoring finance. How do you know that you are getting the best possible deal. A good factoring broker will be able to recommend the best possible finance companies for your particular circumstances.

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As the economy heads out of recession many businesses will experience an increase in turnover. There are a few signs that this is already starting to happen in certain sectors of the economy. Go to the bank for an increase in bank overdraft in order to fund your working capital requirement and your request will probably fall on death ears. Thankfully invoice factoring can potential release up eighty five percent of your unpaid invoices within twenty four hours. In addition the amount and level of any factoring facility is not restricted by the strength of your balance sheet and any available security but by the amount of your outstanding invoices. The facility will grow with your business to give you the financial freedom that you require.

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Factoring is fast becoming the most popular  working capiatl facility proving a life line to many busineses. Factoring is the process of obtaining cash against your inpaid invoices typically up to 85% of the total amount. A specialist factoring company wil use  the unpaid invoice as their security and if anything happens to your business the finance company will collect the unpaid invoices to repay the debt. Factoring or even invoice discounting is great for a business that has a turonover of over £100k and if yur businesss is growing fast it will provide to working capital to fund purchaases of new stock and pay those all importnat bills.

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Many businesses are seeking finance to enable them to import goods from foreign countries. Providing that the goods have been pre sold in this country it may be possible to get funding from start to finish by way of an international trade finance facility dove tailing against a factoring or invoice discounting facility.

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Many business believe that they are not eligible for an invoice finance product because they have a poor trading history. This will almost certainly be the case if you require an invoice discounting facility. This might also be true if you approach a high street bank for either invoice discounting or factoring. The good news  is that even if your bank has knocked you back for a factoring facility there are many independent factoring companies specialising in this area and they are able to take a more flexible approach to helping a business.

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