debt Factoring

Protecting Yourself from Your Customer’s Problems

Protecting Yourself from Your Customer’s Problems

Securing customers is an integral part to the life of any small business. Without customers you’ll be unable to sell your products or services, spelling financial trouble for your enterprise. But securing your customers is only half the battle.Once you have them in place you need them to pay. You can invoice them but you can’t always legislate for your customer’s financial position. A client’s insolvency or inability to pay is a huge issue which could really affect the viability of your business. To maintain your cashflow and protect yourself against bad debt, it’s vital that you investigate leading debt factoring solutions and choose an option that fits in with the needs of your business. How does factoring work? It’s all very simple. Once you’ve chosen a specific factoring agent all you ... »

Debt Factoring and Invoice Discounting

Financial services companies that provide businesses with debtor finance, secured against unpaid invoices are known as Factors and Invoice Discounters. Factors buy your trade debts and typically will pay 80% to 85% as soon as they receive a valid copy invoice. The balance, less charges, is paid when the customer pays. The Factor collects the debt from your customer directly but will usually agree collection policies with you, in order to ensure faster customer payment without loss of goodwill. Some Factors also provide bad debt insurance. With invoice discounting responsibility for collection of debts remains with you and the service is normally undisclosed to customers. Payments that you receive are paid into a bank account administered by the Invoice Discounter and you are then credited ... »