When to consider Factoring

When the decision is made to pursue an Factoring facility, the company should have a clear understanding of its own goals, as well as the results expected from the Factoring Company. This will allow the company to take full advantage of the comprehensive range of Factoring services available.

Factoring is a particularly viable alternative for a growing company and Factoring unlocks cash tied up in a sales ledger. In such a business environment, control is essential because managerial and financial resources are constantly being challenged.

Factoring can ease cash-flow problems, Factoring can provide some predictability in a rapidly changing situation. Factoring can also increase the availability of working capital and alleviate cash-flow problems when a company takes on new customers; gains new customers; experiences a slowdown in collections (customers tend to pay quicker when they know a Factoring is involved); has increases in bad-debt levels (Factoring Companies can also provide bad debt protection); has heavy capital investment program or just needs to cover unforeseen cash requirement.

An acquisition, for example, can expose the firm to a new and unfamiliar customer base, thereby creating a need for enhanced receivables management (Factoring). And since granting trade credit is comparable to making an investment in another company, a factor's credit protection helps prevent unsound investment decisions. Advantages of Factoring.

For further information or a confidential discussion on Factoring please contact us.