How Does Factoring Work?
Factoring (and invoice discounting, another form of invoice finance) offers most businesses an added advantage in raising funds or general cash flow assistance by providing cash against unpaid invoices.
Due to the innovative way that borrowed money is secured, factoring frequently allows businesses to borrow larger amounts of money compared to more traditional forms of commercial finance such as bank overdrafts.
Factoring normally works as follows:
Step 1: You perform the service or provide goods as agreed with your client and notify us of the invoice value
Step 2: We source financiers who pay into your bank account up to 90% of the value of the invoice as fast as a couple of days
Step 3: Our financiers collect the payment for you
Step 4: They will pay you the balance of the invoice value
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