If they’re looking for high-quality, reliable factoring, UK businesses should first understand what it is – and what their options are.
What is factoring?
Factoring is a form of invoice finance that primarily appeals to companies that prefer not to manage their own sales ledger and credit control processes. It’s a straightforward product, and its appeal is fairly simple. With factoring, UK companies still send invoices, but we take control of the entire process of collections.
If you don’t have the internal resources to pursue customer debts, this relieves you of a heavy financial and operational burden. Unpaid invoices cause significant cash flow problems: getting paid is often a process of spending money in the pursuit of money, and many businesses will choose to eat the cost instead of claiming what’s rightfully theirs.
With factoring, you can be assured of receiving up to 85% of the value of your invoices – on or ahead of time. It’s a clean, simple way of guaranteeing payment for your pending invoices.
The factoring journey
Before agreeing to factoring, UK companies should understand what it involves.
Firstly, we’ll arrange a meeting to establish your requirements and determine the fundability of your customers’ debt. If it appears that we can work together, we’ll send out a surveyor to gather crucial information about your business: details about operations, financial performance, and whether or not you meet the criteria for factoring. This isn’t an inspection: we’re simply looking to get to know your business and work towards the best possible funding solution.
Once we know what we need to know, we’ll hold an internal credit discussion and arrive at a final decision. If we think we can work together, we’ll send you a formal offer. From end-to-end, the entire process takes between a week and a fortnight – though more challenging deals may take longer.
Once this process is complete, we can typically advance you any cash you may need – up to your limit. If this is set at 75% and you’re owed £40,000, we’ll be able to send you £30,000 almost instantly. When your client pays, we’ll remove our service charge and transfer the remaining moneys owed – you don’t have to do anything.
If you prefer to retain control over credit management, consider invoice discounting
At Nucleus, we understand why businesses request factoring services: they want to receive their payment, but they want none of the hassle that goes along with pursuing delinquent clients. Our service is tailored to address these often-competing needs.
Our team is experienced, knowledgeable, and determined to find the best solution for your business. Maintaining a healthy cash flow
is the only way for a company to remain stable and eventually lay the foundations for growth; when it’s interrupted, the consequences can be devastating. We approach this problem by treating our clients as key business partners: we keep their short and long-term goals firmly in mind, and work tirelessly to bring them to fruition.
At Nucleus, our invoice finance services
– whether you opt for factoring or invoice discounting
– are designed to address your company’s urgent and long-term cash flow requirements. Talk to one of our experts
to find out more.