Believe it or not, even in the current economic climate, there are still one or two individuals wanting to start a business . Madness I here you shout. However in fairness they are tending to be characters that have been around the block a few times, are quite well respected and connected in their particular sector, have maybe gone off to do something else and then think blimey I can make a few quid here when things really start to pick up. Factoring is nearly always a product that most new businesses automatically require. Cash is king they say. Save your cash for the unexpected and fund as much as possible in the business.
However there are so many different factoring companies available how do you know which one to choose. In our opinion it is relatively simple. A good factoring broker should be able to point you in the right direction. For starters a new start business is probably best steering away from the banks. Banks might be OK at providing invoice discounting facilities for the more established business however factoring is all about adding value in terms of providing an efficient credit control service and providing the right level of funding against he debtor book. In our opinion and many other professionals in the financial community will agree, that locally based and independent factoring company is better placed to provide such a service. Independent in that they are not bank owned but they do lend their own money.
Independents tend to specialise in factoring. It is their core product unlike the banks and some building societies that have jumped on the band wagon of offering factoring and invoice discounting. XL business Finance can help a new start business assess the right type of funding partner for their business. Any recommendations are based on location, sector, projected, turnover and type and quality of the debtor book
