What is Invoice Factoring Birmingham?
If you are looking for Invoice Factoring Birmingham, look no further. Our expert agents are here to assist your business and find you the best invoice factoring rates for you.
You may be thinking “What is Invoice Factoring Birmingham – and how can it be beneficial for my business? In short: you simply sell your invoices, minus a small fee. Our invoice finance partners will then carry out due diligence, and then advance up to 95% of the invoice, providing immediate cash flow for you to use for your business needs. Whilst clawing back some of your free time as you don’t have to chase customer payments.
Key Features
Receive up to 95% of your sales invoice
With business invoice factoring, approval is quick and easy. In most cases you can get paid for your invoices in 24 hours.
Improves personal wellbeing
Invoice Factoring Birmingham helps reduce payroll stress, giving you access to cash to meet weekly, or monthly payroll commitments.
Forward planning for success
Want to replenish stock? With competetive invoice factoring rates, it will mean no more waiting for your customers payments. This will allow you to purchase supplies quicker.
Supporting you and your business
The lender takes over the running of your credit control, a dedicated team of experienced professionals, who will manage your collections, reducing late payments and the risk of bad debts.
Your invoice factoring company grows with you
The last thing a growing business needs is to incur more debt, and so we keep invoice factoring costs down. Invoice Factoring allows you to get the capital you need when you need it, and grows as your business grows.
How does Invoicing Factoring Work?
Companies that are using business invoice factoring do not have to wait for their customers to pay their invoices for them to pay suppliers, staff, and other overheads. Invoice Finance lenders will purchase your invoice and collect the payments from your customers. You do the work, sell the invoice, and typically get up to 95% of the invoice value immediately. Once payment from your customer has been received, they will send you the remaining balance, minus their fees and any other charges.
How does Invoice Factoring work?
A guide in 5 simple steps:
1. You process the invoice to your clients
Provide your service or product, on your agreed terms.
2. Flexibility in the Invoices you sell
You can tailor your facility to gain funding from one invoice, multiple or your whole sales ledger. The invoice factoring company will purchase the debt that has been agreed with you.
3. Receive up to 95% upfront
Most lenders will allow you to receive up to 95% of your invoice value
4. Cash Collection
The invoice finance company will manage credit control, and your customer pays the invoice factoring company directly.
5. Receive final balance
Once payment has been received, the balance, minus and fees and charges will be made available to you.
Invoice Factoring Costs
For Invoice factoring in the Birmingham area, and the costs involved vary from business to business. It is important that you understand the invoice factoring rates associated with running an invoice factoring facility.
Application / Commitment Cost
Some lenders will charge a fee to carry out due diligence, and some do not.
Service Fee
The invoice factoring costs will include a service fee for the day to day administration of the facility charged as a percentage of the gross invoice value.
Is invoice factoring the right solution for your business?
Invoice factoring is a viable funding solution for many business sectors including: Haulage, Recruitment, Manufacturing and many more. With the COVID-19 pandemic crippling business cashflow, it is becoming a crucial role in businesses staying afloat.
Business owners are great at making their product and providing their service. Cashflow will always be ‘king’, and with small business invoice factoring the pain, headache or worry about cash is taken away.
Invoice Factoring gives SME business owners the opportunity to access cash from invoices, but just as importantly it also gives the gift of time. The time you or your team spend managing your credit control. You can focus instead on achieving your business goals without the typical cashflow problems you were experiencing before invoice factoring.
Are you looking unlock cash from your invoices? Invoice factoring Birmingham could the right funding solution for you.
Invoice Finance Costs
Invoice Finance costs vary from business to business but are broadly split into the following categories:
Arrangement Fee / Survey Cost
Some lenders will charge a fee to carry out due diligence, known as a survey and there may also be an arrangement fee. This is the cost of setting up the facility. Some will also charge a small annual renewal fee thereafter.
Service Fee
The Invoice Discounting Costs include a service fee for the day to day administration of the facility, usually charged as a percentage of the gross invoice value but sometimes this can be a pre-agreed fixed monthly amount. When this is charged as a percentage, there is often a minimum monthly charge agreed at the outset.
Discount Fee
This is calculated as a percentage of the total funds you borrow.
Ancillary costs
Some invoice finance companies will charge additional ancillary fees, which can include CHAPS payment charges for when you need to draw down funds on the same day.
Contact us to speak to one of our experts and find out if Invoice Finance is the right solution for your business and for tailored quotes.
