Invoice factoring is a fast, efficient way to improve your cash flow while removing the stress of collecting late payments from customers.
How does it work?
With invoice factoring, just like invoice discounting, you get up to 90% of the value of each invoice the instant you raise them. But with invoice factoring you also get access to a professional credit control team who will recover the monies owed by your customers on your behalf, giving you the full amount less a fee once the customer eventually pays.
What are the benefits?
Clients who use invoice factoring find numerous benefits: lower credit control overheads, professional management of debtors, tighter control over finances, more accurate budgeting and forecasting, less worry about late payments. But the biggest benefit for most businesses is the immediate and significant cash flow injection.
How much cash could you release with invoice factoring?
So the big question is how much cash could you realise using invoice factoring? If you know the number of invoices you raise each month, the average value of each invoice and the average time it takes your customers to pay you can quite quickly provide an indication.
For example, if a firm with a £1.2 million turnover averaged 40 invoices a month with a value of £2,500 each and debtor days of 60 days, invoice financing could release up to £187,398 for the firm to invest into the business.
For a quick indication of how much invoice factoring could release into your cash flow, use the online calculator at Close Brothers Invoice Finance.
How does it work?
With invoice factoring, just like invoice discounting, you get up to 90% of the value of each invoice the instant you raise them. But with invoice factoring you also get access to a professional credit control team who will recover the monies owed by your customers on your behalf, giving you the full amount less a fee once the customer eventually pays.
What are the benefits?
Clients who use invoice factoring find numerous benefits: lower credit control overheads, professional management of debtors, tighter control over finances, more accurate budgeting and forecasting, less worry about late payments. But the biggest benefit for most businesses is the immediate and significant cash flow injection.
How much cash could you release with invoice factoring?
So the big question is how much cash could you realise using invoice factoring? If you know the number of invoices you raise each month, the average value of each invoice and the average time it takes your customers to pay you can quite quickly provide an indication.
For example, if a firm with a £1.2 million turnover averaged 40 invoices a month with a value of £2,500 each and debtor days of 60 days, invoice financing could release up to £187,398 for the firm to invest into the business.
For a quick indication of how much invoice factoring could release into your cash flow, use the online calculator at Close Brothers Invoice Finance.
