Many businesses today are turning to debt factoring and business factoring as an alternative financial provider apart from the traditional bank overdrafts as means of providing financial support for their business.
Factoring is arranged whereby your business makes a sale and an invoice is raised to your customer. FactorONE as the financier then effectively purchases those invoices from you and provide you with up to an 80% advance for the outstanding payments, therefore giving you the boost of cash you need to keep your business running efficiently and meeting liabilities such as debt finance, wages, tax and supplier payments. The remaining 20% will be returned to you when your customers pay the invoice, less a small fee, which is determined taking into a number of factors such as your expected turnover and debt turn.
Given that a factoring solution sells the receivables and the short term loan created is self-liquidated by the client’s customer, the solution is not a balance sheet liability.
FactorONE’s debt factoring solutions also offer your business assistance in maintaining your accounts receivables, ensuring that all debts owed to your business are paid promptly within terms so you can carry on with operating your business on a day-to-day basis and also giving you opportunities to grow.
Next Steps?
To find out about how Invoice Factoring can help you with financing your business click here or call us on 1300 269 423
