Invoice Factoring

If you submit an online enquiry, we will to call you back within 24 hours (please note enquiries made during the weekend will be responded to within 48 hours).

Once we have spoken to you, an appointment can be arranged for the most convenient date and time. We can come and see you the next day if this suits you.

Invoice factoring is not currently regulated by the Financial Conduct Authority (FCA). An industry-wide code of conduct is provided by the UK Finance to ensure a fair service and integrity is provided for invoice factoring services. It is widely accepted that the regulation of the invoice finance sector would contribute to the increasing costs of its services. Therefore, this enables invoice factoring providers to remain competitive and provide a low-cost solution for businesses seeking to utilise invoice factoring services.

Technically speaking factoring is not considered a loan as it is a purchase of accounts receivable. The factoring company purchases future receivables (invoices) and provides the business with a percentage value of the invoice upfront. The remaining balance minus a fee is then paid to the business once the invoices have been settled. Rather than a business waiting a significant length of time for an invoice to be paid, invoice factoring enables a business to access cash quickly and easily.

There are a number of reasons companies in the UK may utilise invoice factoring services for their business; primarily, factoring helps companies ease their cash flow concerns by receiving payment of invoices immediately. Slow paying customers can put a strain on cash flow and factoring with Novuna Business Cash Flow gives businesses an option to receive cash in 24 hours, as opposed to waiting 30, 90 or even 120 days to get paid by customers.

Invoice Factoring has become a popular method of business funding. For businesses who tend to experience longer payment terms with regards to their invoices, invoice factoring can be the solution as it is designed to provide working capital for businesses instantaneously.

Moreover, it can be a beneficial service for all types of businesses seeking immediate access to cash without suffering cash flow issues from the 30 to 90 days it takes for the payment of their invoices.

The cost for invoice factoring is split in to three key areas. A set up fee for the administration of establishing the facility. The service fee covers the management and admin costs related to your account and is charged as a percentage of your gross turnover.

Finally the finance fee is the cost of the money you draw down and is charged daily against your outstanding balance.

All reputable finance providers will be transparent about the fees and costs related to the facility prior to signing the agreement.

Invoice factoring can be highly effective, particularly if you’re running an otherwise healthy business that finds itself occasionally short of cash due to late-paying clients, seasonal peaks and troughs or the costs of paying staff.

We offer flexible funding options that can be tailored to the specific needs of your business. If your company continues to grow and develop, we can release more money to you quickly, without the need for re-negotiating your contract.

If you wish to switch to us, we'll take care of everything. Simply contact us and arrange for one of our business development managers to pay you a visit. Once you’ve decided to work with us, we’ll contact your current invoice finance provider and arrange for a transfer of your invoices to us. Your funds will then be with you within one to five working days.

If you face termination fees from your old provider, we can give you up to £1,000 towards them. We also offer a six month trial period for our own services – if for any reason you decide to leave during this time, you won’t face any of the exit charges normally associated with standard contracts.

Almost any type of business can benefit from invoice factoring services. However, it is particularly valuable for fast-growing businesses with cash-flow problems due to late-paying customers or other issues.

If your company has a small or inexperienced credit control team that could be better utilised in other areas of your business, factoring could also be an ideal solution. By allowing us to collect your invoices on your behalf, you could significantly bring down your overheads by eliminating the need to pay staff to manage your credit control.

Companies experiencing rapid growth can often benefit significantly from Invoice Factoring services. In order to carry on growing and expanding, companies often need quick access to ready cash, but may sometimes struggle to balance the cost of meeting unexpected demand. Why not arrange a meeting with one of our advisors to find out if your business could benefit from invoice factoring?

If you’re already tied to an invoice factoring contract and wish to switch to Novuna Business Cash Flow, we can help to negotiate a transfer. If you face a termination fee, contribute up to £1,000 towards the costs. We offer a six month no-obligation trial period during which you can leave at any time without facing the usual exit charges.