Is your company’s cash tied up in invoices? Is extending credit to your customers, pushing your organisation into debt? What about using invoice factoring to make your money flow?
By outsourcing your sales ledger management to collect money owed by customers, you free up time to manage your business. The bonus is that potential customers are credit checked, so you’re likely to trade with customers that pay on time.
My Business Advantage can negotiate better terms with financier suppliers who offer invoice factoring services. It will take you a few minutes to register your details to become a member, and the process is simple.
1. The finance provider typically buys around 85% of the value of the raised invoices.
2. The finance provider will collect the sum of the sales invoice and once received; they pay the remaining balance to your business.
3. You pay the finance provider the pre-arranged fee (and any interest if applicable).
Here’s an example of how it works: If your customer owes you £30,000, you sell the invoice to a finance provider for £25,500 [85%]. The finance provider collects the £30,000 debt from the customer on your behalf and pays you the remaining £4,500. You then pay any fees and interest that you have agreed, which means that you get access to your invoice value immediately and then the remainder once the customer has paid.
Posted on 25th November 2018
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