What is Invoice Factoring?
Invoice Factoring allows you to unlock cash tied up in your unpaid invoices while outsourcing your credit control to a specialist finance provider. Unlike invoice discounting, your customers are aware that you are using invoice finance, as they make payments directly to the factoring company.
Invoice Factoring is a flexible funding solution that helps businesses improve cash flow without waiting for customers to pay their invoices. Once you raise an invoice, a finance provider advances a large percentage of its value, giving you immediate access to working capital. They then manage your sales ledger, collect payments from your customers, and release the remaining balance once the invoice has been paid, minus their agreed fees.
Ideal for businesses that want to reduce the time spent chasing payments, invoice factoring provides both reliable cash flow and professional credit management, allowing you to focus on growing your business.