How Factoring Finance is Useful for Companies

Many small to medium sized companies use factoring finance or invoice discounting as a form of working capital. It allows the company to draw money against the invoices, despite the customer not having paid the money. There are many benefits as to why factoring finance or invoice discounting is a good thing but what exactly is it? Factoring finance and invoice discounting are two different things. Invoice discounting is mainly used by small to medium…

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Factoring Charges with Cashback

A rather novel factoring facility is being launched next week designed with simplicity in mind as well as complete transparency of factoring charges. There will be no documentation or setup charges, no BACS charges, no online charges, no annual minimum costs and no interest charges with just one charge for factoring commissions being levied but whilst other factoring companies have similar products the novel aspect of this facility is that on the anniversary date of…

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Recruitment Finance for Permanent Placements

Factoring companies have historically not been keen to offer factoring for recruitment companies and agencies whose sole income was derived from permanent placements, although they have looked more favourably on recruiters whose business was predominantly contractors or temporary workers with the occasional permanent placement thrown in for good measure. As with most things in the world of commercial finance however, times have changed. The main obstacle has always been the fact that most recruiters have…

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Is Stock Finance Right for your Business?

Stock finance is now available for companies who wish to purchase finished goods for stock in addition to the existing trade finance facilities that have been available for some time that have been geared to helping finance the purchase of goods that are presold. Although stock finance has been available in the past it has tended to be offered as part of a comprehensive lending package or as a top up in conjunction with an…

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Ban on Assignment Restrictions on Factoring to be Outlawed

It has long been a source of annoyance to both factoring companies and their clients that certain companies and institutions have a clause in their terms and conditions banning the assignment of any invoice rendered to them but it looks like this practice will be coming to an end shortly as the Small Business, Enterprise and Employment Bill which has been passed by the House of Commons and is now on it’s way to the…

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Backup to the Cloud with Free 15GB from Microsoft

No matter how much you have, there never seems to be quite enough storage. Movies, photos, music, documents and all the other facets of modern digitised life demand space and, regardless of how many hard drives you buy and how big that new laptop’s hard drive seems, it soon runs dry. With life and entertainment becoming more and more reliant on online and offline storage, it pays to find every free source of it available.…

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Calculating the Differences in Cost between Factoring vs Hiring a Credit Controller

For many businesses, especially those in the medium and smaller range of concerns, there is a continuous drive to make savings where possible whilst maintaining utmost quality of the products and/or services that the business offers. Sometimes, however, savings can come in unexpected forms. For example, businesses unfamiliar with factoring might assume that the process will cost them more money than they will gain – much like taking an emergency loan that results in repaying…

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Cash Flow 101: Introduction to Managing Cash Flow Cycle

In times of economic downturn, the importance of cash flow management comes into even sharper relief. When times are lean, accessing money from banks and other lenders becomes much harder. With heightened wariness of bad investments, lenders are not only more reticent to lend but also impose much harsher, costly repayment conditions. Like the blood flowing through a body, efficient, planned cash flow is the lifeblood of any well-run business. It is vital to the…

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Tungsten Corporation buying/becoming a full UK bank

When famed London investor Edmund Truell and his brother, Danny (Wellcome Trust Investment head) started their company, Tungsten Corporation, they had plans to change the way businesses deal with their supply chains. Now, with recent news of them purchasing a bank and plans to start offering loans to small and medium-sized businesses in the UK, they can say with some certainty that they have done it! The product that has granted them such success and…

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Careers in Factoring

Many people think of a career in the financial industry as something only for graduates from the London School of Economics or Harvard, and involves great rewards for simply moving a few numbers around. The truth, however, is quite different. Factoring is a career that has many different layers, each catering to a different part of the process. There is a wide range of roles, suitable for people approaching from any number of different backgrounds…

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Corporate Insolvency Procedures, or What to Expect if Things Go Wrong

Corporate Insolvency Procedures Whilst insolvency is something that no business ever wants to experience, it is vitally important to know just what the process entails. Many businesses and corporations have thought themselves ‘too big to fail’ and have subsequently failed. They then find themselves in an alien world with unfamiliar procedures and restrictions, wondering just what happened. Since the Enterprise Act 2002 amended the Insolvency Act 1986, the government has made big changes to both personal…

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How Clever Use of Collateral Can Help Secure the Best Finance

Financing is easier to come by when the business has collateral with which to back the loan. This is one guarantee that the business gives as assurance that they can indeed cover the loan – through materials, receivables and other assets that hold value. This helps keep associated costs and interest as low as possible. Collateral is the key that unlocks the finance door for many savvy small businesses. Smaller businesses generally have two options…

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Global Trends in Factoring & Invoice Discounting

Over the last couple of years, more and more businesses have seen the benefits of factoring. Year on year increases in factoring turnover in the EU illustrate this. Since 2003, EU factoring turnover has nearly trebled.Banks, too, are increasingly coming around to the idea of factoring. With a more stable economy, they are gaining confidence in financing small businesses. With a better economy comes lower risk and less money required on the bank’s behalf. All…

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Factoring vs Forfaiting: The Differences

The average small business has in excess of £11,000 less in funding than they need to grow, according to new research. Many businesses, large and small, spread across many different sectors, often find themselves in need of a cash injection.Sometimes this might be for short-term running costs such as materials, staff wages and general overheads. Other times, businesses require money to fund long-term growth or take advantage of an opportunity that only has a small window…

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Plan Ahead, Finding Working Capital

Although the global economy has begun to show signs of returning to good health, many businesses – especially smaller and medium-sized entities – find it virtually impossible to secure financing through traditional channels. Planning ahead and finding a Factoring Company that suits your particular business needs takes the worry out of implementing a factoring solution for working capital. When Banks Won’t Help For new businesses or smaller concerns, convincing a bank to invest is still an uphill…

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Factoring Advisory Service

Much quicker and carrying less risk than a bank or third party loan, factoring has grown into an extremely popular way to obtain working capital funding. The business sells their outstanding sales invoices to a factoring company in exchange for immediate funds. These funds usually take a maximum of 24 hours to be received, outstripping the speed of receipt of a bank loan by far. The business can receive anywhere from 60 to 98 percent of…

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What you can Expect in Factoring Fees

Factoring is a way for a business to generate money in a short amount of time. By selling unpaid invoices to a factoring company, the business can gain income either for the short-term running of the business or for long-term growth. Rather than waiting weeks or even months for customers to pay their invoices, the business has the money at hand, usually within 24 hours. Factoring is a reasonable alternative to bank loans for a…

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Export Finance and Export Factoring

Export finance in the form of factoring for exports is a flexible method of improving cash flow for UK companies selling overseas by releasing cash tied up in export sales invoices and this type of funding is available in a number of different guises from various factoring companies with the demand looking set to increase as the Government has been urging UK companies to export more. Many factoring companies use the services of a worldwide network…

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Credit Insurance and Factoring

Many companies factoring their invoices also wish to take advantage of credit insurance or bad debt protection and this can be achieved in one of two ways. Some factoring companies offer a non recourse factoring facility, which as the name suggests is without recourse to the client in the event of the failure of the customer. The factoring company will underwrite individual credit limits on each customer and will accept the bad debt loss in…

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