Invoice factoring is a financial solution designed to enhance cashflow for businesses. If you are a payroll or umbrella company wishing to offer terms to your recruitment clients typically between 7-35 days factoring allows you to receive immediate funds so you can conduct your payroll on behalf of the recruitment agency.
With factoring, you have the option to outsource your credit control. This means you can save time by letting the factoring company handle customer payments, freeing you to concentrate on core business operations.
How It works
Issue an invoice to your customer as usual.
Provide a copy of the invoice to your factoring provider.
Receive an immediate advance of up to 90% of the invoice value.
The provider can manage your credit control. Your customer pays the provider directly on the invoice due date.
You receive the remaining 10%, minus any agreed-upon fees.
Pros & Cons of Factoring
Need Help Deciding?
We’ll guide you in selecting the ideal financial solution for your business. Besides Factoring and Invoice Discounting, there are other options available such as CHOCCS, Confidential Factoring, and Spot Factoring, each tailored to specific needs. Lenders vary in their product offerings and funding criteria, ensuring diverse choices to meet your requirements.