How does invoice factoring work?

Here's a simple breakdown of the process:

1. Invoice creation: Your business issues invoices for goods or services delivered.
2. Factoring agreement: You choose to "sell" these invoices to a factoring company.
3. Immediate payment: The factoring company pays you a significant percentage of the invoice value upfront - typically around 80-90%.
4. Customer payment: The factoring company then collects the payment directly from your customers.
5. Balance receipt: Once the full amount is collected, you receive the remaining balance, minus a fee for the factoring service.

Find out whether invoice factoring can help improve your cash flow

Get a quote online or call us on the freephone number below to have a chat with one of our invoice factoring experts.

Get a quote online 0808 250 0859

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