The essence of Factoring is cash flow, with professional sales ledger management included. If you use a Factor you can access up to 95% of the value of your eligible sales invoices. In many cases this will bring a business significantly greater working capital than they may be receiving from a conventional source like a bank overdraft.
So your business has extra working capital - the Factoring company will also run the sales ledger, send statements, reminder letters, reconcile payments and so on and they will collect payments from your customer. If needed you can insure yourself against the risk of your customer becoming insolvent.
If a lack of operating capital is at the heart of your financial trouble, we can quickly determine which solution best suits your needs. You can arrange a free consultation and receive confidential advice from a licensed insolvency practitioner at your local Begbies Traynor office.