Factoring provides on-call access to the funds tied up
in your accounts receivable ledger.
As a Invoice Factoring provider, I help businesses to convert their sales on credit terms into immediate cash flow.
I place a great deal of emphasis on small to medium businesses and sole-proprietorship and believe that by providing affordable quality Invoice Funding Solutions, it will help grow their business and prosper and in turn, help our local economy grow and prosper as well.
More Funding potential than bank overdraft Facilities
Factoring Facilities adjust as your business grows.
Paying suppliers ontime or early means you can negotiate or take advantage of prompt payment discounts or avoid late payment penalties.
How does factoring work?
Process for Factoring
- After you have done your invoice run, copies of invoices
sent to customers are submitted to Invoice Funding Solutions (IFS)
- 80% of the value of approved invoices (less fees) is made available for you to use like an overdraft
- Your customer pays IFS directly
- The remaining 20% becomes available for you to draw down
How much does factoring cost?
- A fee of 2-5% of the value of invoices submitted is paid
as a fee for the administration of your facility. This covers
the costs associated with processing the invoices and
drawdowns, liaison with you and your customers, receipting
cash, chasing payments and sending statements.
- A further discount is charged for each day past due date, generally 0.25% per day.