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In the UK one of the biggest problems in the IT industry is the long delay it typically takes to get paid by customers .It is not uncommon for it to take 60 to 90 days from the time an IT company completes a job or contract to the time when the company actually gets paid. Large commercial or public sector organisations almost have an industry standard interval of 90 days from receipt of a service or goods to the time that payment is sent out.

Business Factoring in the UK for IT business is often essential for cash hungry IT businesses whereby a business sells its unpaid invoices to a third party (called a factor) at a discount in exchange for upfront money of up to 95% in value of the invoice with which to finance continued business.

  • It can be tough for a growing IT or a new IT company to make ends meet before the 90 days are up and the payments start coming in.
  • An IT companies’ employees are expect to get paid on time; which is usually monthly , and most of the operating expenses need to be covered on a monthly basis too. Some of the bills even need to be paid right up front.

To help cover cashflow needs in the IT industry many IT firms are utilising factoring solutions.

  • IT consultants and planners are using factoring facilities to fund and improve systems and structures of their businesses.
  • IT operations technicians (network support) are using factoring to finance the growth of their businesses.
  • IT user support technicians businesses are using factoring to fund the cash flow cycle of their businesses.
  • Network/systems designers and engineers – install and maintain communication networks within and between organisations. They work under strict contacts and often need factoring to fund day to day operations.

There are over 100,000 businesses in the UK’s IT and telecoms industry, with just over 90% of these being purely in IT. IT is a dynamic industry that is often informal, but always focused on achievement.

Our services are completely free of charge so if you are involved in any IT industries and are interested in factoring and other cashflow solution then please call on 0800 597 4757.