Debt Factoring

Debt factoring is when a business leverages against its account receivables to a financing company at a discount. This move lets companies immediately unlock cash tied up in unpaid invoices without waiting for the usual extended period.

How Does Debt Factoring Work?

Debt factoring is actually easier than applying for a loan from a local bank. It starts with a B2B business offering its services and products to its customers as usual. After invoicing the customer, you can share the invoice with our financing department and get paid immediately instead of waiting up to 90 days. This allows the business to maintain working capital and improve its cash flow.

Besides helping you unlock your finances, we will also take over the responsibility of collecting payment. This saves you the trouble and cost of having a credit control department and allows you to save costs.

Benefits of Debt Factoring

Debt factoring can have various benefits for large multinationals and startup businesses and can be used as a key element of your B2B strategy. Some of these benefits include:

Improved Cash Flow

The most immediate advantage of debt factoring is improved cash flow. By unlocking cash tied up in unpaid invoices, you release cash and alleviate any cash flow issues you might have.

Gaining access to tied-up capital can also help your company grow. Previously unavailable funds can now be used to support an expansion or purchase vital equipment.

Saves Time and Resources

Debt factoring can also save time and resources. Managing invoices and ensuring your customers pay on time can be resource-intensive. If they don't pay, you may commit yourself to chasing payments when you could focus on growing your business. With debt factoring, the responsibility of chasing invoices goes over to the factoring company.

It’s Faster

When you apply for a loan to mitigate your business's cash flow problems caused by invoice terms, it isn't always a viable option, especially for businesses with limited collateral assets or short financial histories.

With debt factoring, the customer's credit score matters more than the business's. This makes debt factoring a faster and easier financing alternative than bank loans.

Why Choose Debt Factoring with Invoice Finance?

Working with the right factoring company maximises its benefits. With Invoice Finance, you can enjoy the full benefits of debt factoring using an easy, quick and efficient approval process that saves you time and provides the financial support you need when required.

Getting approved for debt factoring on Invoice Finance is quick and easy, and you only need to get verified and approved once. After approval, you can submit as many or as few invoices as you need for your business.

Invoice Finance has years of experience in invoice financing and debt factoring and can work with businesses in various industries.