Factoring, flexible Working Capital Finance!

In today's highly competitive economic environment, businesses working capital is under constant pressure to tighten operational controls in order to maintain profitability and increase working capital. In many cases, small companies must devote more time to credit and working capital concerns, which shifts attention away from the principal objectives of increasing productivity, sales and marketing efforts. But there is a solution called its called Factoring.

Working capital tied up in outstanding invoices can be a permanent problem for companies. As your business grows, additional working capital is frozen into outstanding invoices. Factoring realises working capital tied up in your outstanding debtor book. With Factoring the more a business grows the more Factoring instantly releases cash. Factoring realises cash immediately when an invoice is raised so no more waiting 60, 90 days. The Factoring Company releases back to you the remaining undrawn balance when your customer settles their invoice. The funds generated by Factoring can be used to fund new sales.

Most companies are growth-oriented, Factoring can free up your working capital and lets you use it in areas that are more profitable. With Factoring you are now able to take advantage of profitable opportunities such as discounts and special rates with additional working capital. Factoring makes your cash flow more predicable.

 

How much working capital could your Sales ledger release with Factoring?

Enter your current sales ledger value and your overdraft limit to calculate the potential working capital benefit of Factoring. Unleash, your businesses potential with Factoring! Unleash your working capital with Factoring!

 

Your Existing Overdraft	Your Outstanding Debtors	Invoice Finance Advance %	Extra Working Capital

 

Factoring unleashes your businesses growth potential

Factoring provides immediate working capital against your growing debtor book, helps to solve cashflow problems instantly as invoices are raised, Factoring provides headroom for growth and frees up valuable management time to enable a business to maximise its full potential and enhances ownership value.

Factoring helps you increase profits. Factoring funds will be very similar in cost to Bank overdraft. The Factoring service fee must be viewed against the savings that can be made and the ability to increase income reduction on debtors by better collections, better terms from suppliers for early settlement, discontinue early settlement discount to debtors, postage/stationery/telephone/telex - real costs rarely evaluated. Computer costs/capacity. Bad debt costs. Legal charges. Ability to grow quickly/safely.

If your business has inappropriate or inadequate financial facilities, a rapidly growing order book or suffers from working capital tied up in debtors, Factoring could meet your cashflow requirements now and in the long term.

For a growing business debtors are often the most appropriate asset to provide security for working capital and Factoring is the best way access your funds.

Sometimes Banks are not able to control debtor risk when you need flexibility to develop your business to its full potential. There are range of Bank owned and Independent Factoring Companies all bidding for your business. But which Factoring Company can meet your specific needs? That's where First Factor Finance Limited can help.

Factoring can be used alongside existing Bank facilities. Factoring does not disturb an existing Banking relationship. However, it is likely that any existing Bank overdraft facility will be reduced on the commencement of a Factoring relationship but the reduction will be more than compensated by the additional cash made available against invoices by the Factoring facility.