Ever heard of a Factoring Company? Well what they do is take on your invoices and then collect the debt from it. You essentially sell them your invoices and they do all the hard work for you. Why Use Factoring? It really depends what kind of business you are running but most companies will find that factoring is useful for getting money quickly, avoiding the hassle of bad debt and smoothing over your cash flow. By incorporating invoice financing into your business, you can remove the administrative headache that day-to-day management of cash flow can bring. This will allow your business to grow and develop for the future. An example of how this works: Say that your business is owed £10,000 by a company who you expect will pay in a couple of months. What you can now do is sell that invoice to a factoring company who will immediately pay you £9,300. The factoring company then collect and keep the full £10,000 two months later.
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