Invoice factoring is when you get paid as soon as you issue your invoices, irrespective of when you actually receive the payment from your customer. It relieves any stress and inconvenience of not knowing when you are going to be paid and instead of having to wait 30, 60 or even 90 days for your customer to pay you, you can have the money immediately. This is immensely helpful from a cash flow perspective.
Here’s how it works:
After you have delivered the goods to the customer, you send the customer invoice to the factoring company. You can then receive up to 90% of the value, instantly. Once the factoring company collects the money from the customer, you will receive the remaining 10% of the balance, less the factoring fee.
This means that you can get paid the majority of the money immediately, allowing you to continue operating and growing your business effectively. The factoring firm will take responsibility of collecting the payments from your customers. They’ll do this in a professional, courteous manner that reflects the culture of your particular business, resulting in your customers remaining with a good impression of your company, whilst reducing your workload and ultimately getting the job done.
If your business operates in such a way that you don’t receive payment from your customers immediately, then factoring is one of the best ways to ensure you have funding quickly and easily, avoiding the hassles of dealing with a bank, or sacrificing equity. Factoring is commonly used and proves immensely valuable to a vast array of different companies - large and small - in a vast array of business sectors.
It will allow you to have the cash flow needed to maintain and grow your business as smoothly and as fast as possible, and is a finance solution that is completely flexible to your needs.
If you would like further details please do not hesitate to contact us on 0800 612 7729 or fill in a few details on enquiry form and have one of the Leapfrog Finance Advisors call you back, alternatively, email us at Enquiry@leapfrogfinance.co.uk