What is Factoring?

Factoring or Invoice Factoring, is a quick and easy way to release cash that's tied up in your customers' outstanding invoices, allowing you to access your funds earlier. To find out how factoring works and how it can help your business, watch our short video.


Why Invoice Factoring Could be Good for Your Business

If you provide goods or services to other commercial businesses where invoicing is done in arrears, with payment terms of between 30 to 120 days of the invoice date, then factoring could be a good option for growing your business.

Invoice Factoring is a flexible funding solution for businesses looking to improve cash flow by releasing working capital from invoices within 24 hours of invoicing your customer.

So, you don’t have to wait between 30 - 120 days for payment, which helps you continue to manage or grow your business with the assurance you have access to your cash, fast.

Unlike a term loan, you don’t incur extra debt of paying monthly installments for years.


Factoring for Businesses Wanting to Expand or Grow

Expansion and growth plans can stall without the necessary funding in place. Factoring can free up cash tied in invoices so you can expand or invest in your business.

Factoring for Smaller Businesses

It’s a good solution for smaller businesses, whose resources would be better spent on day to day activities. Our dedicated credit control team collect your outstanding invoices, meaning your time is freed up to manage your business.

Factoring for Young Businesses

One of the main challenges for young businesses is securing finance for a new venture. Factoring gives you quicker access to cash without worrying about building up debt. Factoring can also help you overcome unpredictable payment cycles, meaning you can still access money tied up in invoices without having to wait for bills to be paid.


Benefits of Invoice Factoring

  • You get access to cash in 24 hours
  • You can boost your cash flow without the need for debt
  • Up to 80 per cent of your invoice is advanced to you – when we receive payment from your customer, you receive the remainder, minus our fees

  • You minimise late payments and bad debt
  • Take advantage of discounts from suppliers because with better cash flow you’ll be able to buy larger volumes or take advantage of supplier discounts for early payment
  • We can give you useful information about the credit standing of your customers, which can help you negotiate better terms with your suppliers

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