Invoice factoring is a way for businesses to inject much needed funds. This involves selling the customer invoices to a factoring company at a discount, in return for a large proportion of their value. Invoice factoring services mainly shorten the lengthy waiting times which are associated with invoice payments.
Virtually all businesses which invoice customers for payments can use this invaluable service. Although, you need to meet the minimum turnover criteria and other eligibility criteria to apply. Platinum One Accountants can assist you in the initial set-up and manage your invoice factoring scheme.
The main benefits of invoice factoring are:
Factoring companies can unlock funds tied up in unpaid invoices so that your business receives funds without waiting for customers to pay.
Factoring providers will manage your credit control by chasing unpaid invoices. This will allow your business to manage the cashflow more efficiently.
Instant cash injection from a factoring company can be reinvested back into the business. This will help your business grow much faster.