- Improved cash flow - release money tied up in unpaid invoices and boost your cashflow
- Save time- relieve your business of the burden of credit control and concentrate on your core business
- Bargaining power - debt factoring can help you to negotiate better terms with your suppliers
- Faster growth - grow your business at a much faster rate due to the flexible funding line
Disadvantages of debt factoring:
- Reduces overall profit - the factor always charges a percentage of the overall invoice value
- It's the solution to only one problem - factoring solves just one problem - cash flow limitations due to clients paying later than they should be. It should therefore only be used to solve this problem, rather than business loans and lines of credit which can be used to help with all sorts of business needs
What is debt factoring?
Debt factoring is when a business sells its accounts receivables to a third party at a discount, enabling companies to immediately unlock cash tied up in unpaid invoices without having to wait the usual payment terms. The third party pays the business a percentage of the total amount originally charged to the client and usually takes full responsibility for collecting the payment from the buyer.
As your debt factoring company we will pay your business a percentage of the total amount charged to the client, taking full responsibility for collecting the payment.
Debt factoring is basically another term used for invoice factoring.
Your debt factoring provider will chase the debtors for payment of the invoices and collects the full invoice payment from your customer and pays you the outstanding amount, minus a small fee.
The business will be given up to 90% of the invoice value almost immediately from the point of raising the invoice, therefore reducing the cash deficit for the small business.
Debt factoring companies are proven to help businesses grow and prosper and is an excellent alternative to a bank overdraft.
Debt factoring with Novuna Business Cash Flow
We are an award winning debt factoring company
Our debt factoring service is highly recommended by our customers
"The communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll."Read full review
A very professional and yet friendly company to deal with.
The whole team have been keen to understand how our business works including the peculiarities of our industry and as a result, our specific needs for working capital. Subsequently, they have been supportive of our changing needs and open to suggestions to help improve our business model and profitability further.
Competent staff, slick technology. Would recommend
Halo is one of the smartest bits of tech I have seen & every team is only as good a it's people and I would like to take this time to actually specifically point out Alex Hall & Claire Davies. Alex is an account manager that has continually improved during our time working together and is a real credit to Novuna. Claire has been exceptional from start to finish; meticulous in her work and very patient with us at every temp - an absolute star. It is a shame that the email address went to a generic platform and not each individual. I totally understand why this works better for companies but it did mean that the personal element was lost meaning that starts like Claire will be harder to identify from a customer point of view.
High recommedation for Novuna Business Cashflow.
My company was in need of invoice factoring to assist with the cashflow due to the nature of debtor days with our clients. After looking at a number of options, the right decision was made to work in partnership with Novuna Business Cashflow. Right from setup through sales to customer service, the communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll. This has allowed my company to look at positive growth knowing we are safe financial hands. I would highly recommend Novuna Business Cashflow 10/10.
Set up went well and communication was good.
Syed and Vipul were extremely helpful top class service
Very helpful from the start
Great people made this process very straightforward.
Jemma from Novuna (formally Hitachi) was brilliant. Worked with us throughout the process and succeeded when some others had failed. Carried out the necessary checks with a smile and cheery demeanour, making what would have been a laborious process quite manageable.
Teething problems -Maybe ?
It's still early days so I may alter this review at a later date. However with retentions and concentration limits and other items, were finding were not getting 85% up front, were probably getting nearer 70% Also when a customer pays the remaining allegedly 15% due to us seems not to be credited to become available. For instance a customer paid Â£6918 and a customer paid Â£1300 hence we should see an extra Â£1330 available (15% of both these payments). However availability seemed to go down and not up by Â£1330 !!! Hard to work out where this 15% has actually gone ? I'll re-submit this review when things become clearer.
I found Hitachi true to their world in every aspect of the service they promised. I can't recommend enough.
Excellent Customer care and service.
Excellent customer service from start of initial conversations, right through to finally becoming a customer. The whole team involved are a credit to Hitachi, they were accommodating and informative the whole way along the process. I would highly recommend Hitachi to future clients and business associates. Thanks Alan.
I really enjoyed working with the Hitachi team, professional, helpful and really good people to deal with. They have made what could have been a very difficult experience a pleasure. Very happy to recommend them.
Hitachi made the process of moving factoring facilities painless, bearing in mind we previously had our facility with the same provider since 1997. I cant fault Hitachi's staff and processes and we are delighted with the move.
Staff excellent all together professional
Want to learn more about how you can boost your businesses cash flow?
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We explore ways you can begin improving your cash flow situation and start getting your business on track to positive cash flow.