How invoice factoring can solve business cash flow problems

Key points how invoice factoring can solve business cash flow problems

• Invoice factoring is a way for a going concern to convert its invoices into cash quickly to aid cashflow.
• Every business needs cashflow to grow
• Invoice factoring is a method for UK business to convert future credit card receipts into immediate cash quickly to aid cashflow.
• A business can improve its cashflow by selling its unpaid invoices to an invoice factoring company in return for immediate cash
• A business can even sell its credit card receipts to an invoice factoring company in return for immediate cash.
• Companies use factoring to increase cashflow to meet the costs of marketing.
• Companies use factoring to aid cashflow to pay for advertising, which can be a drain on cashflow
• Companies use factoring to increase cashflow due to the constraints of seasonal decline.
• Factoring, unlike a traditional loan, does not create company debt.
• You will not be required to make monthly payments with factoring.
• Applying for factoring is decided by the size of a business’s invoices not its credit record.
• A fast growing business grows relies heavily on regular payments to solve business cashflow problems.
• Appling for invoice factoring to solve a business cashflow problems is far easier than applying for a loan or overdraft.