Factoring
What does it provide?
- Factoring provides working capital by releasing funds held up in outstanding debtor balances
- Reduced administration
- Increased scope for business development
How does it work?
- You provide goods/services to your customer and invoice them.
- You send the invoice to us.
- We make available up to 90% of the value of eligible invoices, less our fees, within 24 hours.
- We carry out the debtor management and collection procedures. Alternatively, confidential, non-disclosed, factoring facilities are available where the debtor is unaware of our involvement.
- Debtors pay directly to a nominated account held by Commercial Factors & Finance Ltd.
- When your debtor pays, we release the 10% owing.
A major advantage of factoring is that the prime security is the debtors' ledger, therefore the facility is not limited to the business owner's personal assets.
The level of the facility reflects the movement in value of the debtors' sales growth and it is the assets of the business that secure any increased funds that are made available.
The facility simply grows with your needs to fund greater sales without having to seek extensions to overdraft facilities or term loans.
Our clients are provided with secure online access to their debtors' ledger so that accurate, timely information is always available.
Full factoring, including debtor administration, costs from 2.5% of the gross invoice value, depending on the factoring period.
Call us to today (09 579-4204) for a no obligation assessment of what factoring could do for your business.