Glenn Blackman | Invoice Finance, Factoring & Invoice Discounting

One of the businesses I am involved with, Cashflow Acceleration Ltd, provides a free, independent quotation search service for factoring. This type of business finance can significantly improve the cash flow of a business by providing finance against unpaid sales invoices and a full credit control service.

Here is a short summary of how factoring works:

Factoring works as follows:

1. The business provides copies of invoices to the factoring company (aka the factor) - this can be done electroncially.
2. The factoring company provides an initial payment of up to 95% against the invoices.
3. The factoring company takes over the task of credit control and chases the debtors for payment when the invoices fall due.
4. The balance of the invoice, less charges, is passed to the business when the debtor settles the invoice.
5. As new invoices are raised so the cycle is repeated and more funds are released to the business improving its cash flow through factoring.

Watch our video: How Factoring Works

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