It is strongly advisable to have these ready prior to making your application, as any missed documents or wrong figures could lead to significant delays in the process. Obviously, when applying for a new factoring agreement you are going to be asked for certain bits of paperwork. Remember that not all invoice factoring companies offer the same rates or services, so it really pays to shop around. Maybe factoring services aren’t currently applicable, but other cash flow solutions can be explored to help fuel your business growth.
If you are unsure whether your business fully meets these conditions, it is still advisable to speak with a financial service provider. Sometimes a minimum or maximum number of invoices a month must be met.Must have minimum turnover of £100,000 (although some invoice factoring companies will consider smaller businesses or start-ups).Must prove that debts can be collected within a practical timescale.Must offer credit terms that meet industry standards.
#FACTORING INVOICING FREE#
The benefits are obvious to a small or growing business that wants to free up capital and convert receivables into assets.Ī factoring contract can be entered into with either a high street bank, as part of their business banking, or through an invoice factoring company.Īs with all financial services, some criteria do need to be met in order to ensure that the factoring contract will be beneficial and sustainable: The process of invoice factoring involves a business selling its unpaid invoices to a factoring company (the factor) for an advance on the money owed.
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