This can provide a secure financial safety net, as it enables you to get on with business and cover your overheads during difficult periods.
There are many different types of factoring, but the process itself can be defined as a financial transaction in which your business sells its accounts receivable to a third party at a discount as a means of meeting your present and immediate cash needs.
At Goodman Corporate Finance we offer the following factoring services:
Credit and Debit Card Factoring
We can provide a business cash advance between £3,500 and £100,000 that’s granted against future credit and debit card sales. In order to qualify, your business has to have been established for at least 6 months and your monthly turnover should be at least £3,500 through your merchant facility.
Beyond general cash flow, businesses typically use the lump sum to fund the sort of investments that promise a swift return such as marketing, PR, website development, advertisement, and the purchase of new equipment or stock.
Card factoring is a simple and speedy process, as decisions are generally made in around 10 working days. We can provide you with funds in a matter of days and with no set repayment dates you’ll be free to get on with business as normal – the more card transactions that are made the quicker your advance will be repaid.
This transaction might best be thought of as “pay as you go working capital”. You get all the short term cash flow solutions of a standard factoring agreement without having to worry about any of the long term repayment commitments.
With selective factoring rather than factoring your company’s entire turnover, you instead factor a particular debtor, or group of debtors, within your companys sale ledger. This allows you to release funds that might otherwise have been tied up in outstanding invoices.
Spot factoring might also be referred to as invoice factoring. It’s a financial transaction in which cash can be released from a single invoice at any time within its payment cycle.
Like selective factoring, spot factoring is a flexible and highly secure means of quickly accessing cash while keeping your business out of debt. Unlike credit and debit card factoring, there’s no ongoing monthly fees or commitment, and you’re free to use your lump sums in any way you wish – whether it’s for general cash flow, or for the purchase of stock, equipment, or materials.
For more information about factoring, or if you’re unsure which factoring service is right for your short-term financial needs, feel free to get in touch. To talk to one of our corporate finance consultants, call us now on 0333 3583502.