Factoring quotes for UK small businesses

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what is factoring?

factoring vs. invoice discounting

choosing a factoring company

Invoice Factoring with Factoring Quotes

Welcome to factoring quotes!

Click here to compare Factoring Quotes.
Click here to compare Invoice Discounting Quotes.

Simply Business offers factoring and invoice discounting quotes. You can compare the UK's leading bank and independent factors. If you require further brokering services we can work together to create a bespoke invoice finance funding package for your company.

Is factoring right for me?

Factoring can be a valuable service but how do you know of you can apply?

Do you raise invoice to other companies? If you do then you can factor.
Are your invoices based on stage payments which must be agreed? If the answer is yes it may be possible you are not suitable.
Do your invoices take longer than 90 days to collect? If yes then you will have to agree special rates with the factor.
Are you UK based? If not then you have to approach a factoring company in the country you are registered in.

As a result of the above guides, there are some industries where the use of invoice finance (invoice discounting and factoring) is particularly prevalent:

Recruitment
Manufacturing
Business Services
Couriers
Haulage
Care Agencies
Construction
IT
Wholesale
Business Retail

However this is not an exhaustive list and our factoring partners will be happy to discuss your specific needs.

How do I compare factoring quotes?

Factoring is a frequently overlooked and valuable commercial finance facility which allows you to release capital from your balance sheet by providing you with money for your unpaid invoices.

The service is most overlooked because many business owners do recognise that frequently the largest asset on their balance sheet is their unpaid invoice column or account receivables. As a result many do not think to try and securitise or leverage this asset to raise finance - many do not relies that an invoice is a legal document, and, as such, the debt can be sold or assigned to another party.

The basic service a factor offers is:

To agree an advance fee (%) on invoices, agreeing to pay that percentage of each invoice raised by you, the customer.
Agree to pay that advance (frequently referred to as the IP) on the same or next day after it is raised.
Offer a sales ledger and credit management facility frequently incorporating a collection service.
Provide an online tool which will allow you to manage your sales ledger and manage the payment made by the factor to you.

For this service you will pay in two main ways:

Service Fee - The service fee will normally be expressed a percentage of your entire company turnover or the value of each agreed invoice you fund. The range of service fee is dependent on how management time you will require from the factor and may range from 0.2% (very, very low management such as invoice discounting) to 6% (high management perhaps with additional payroll or back office services).

APR - The APR rate applies to the cash you draw down against your invoices. The APR rate range is normally between 1.5% and 3% over base rate.

There are potential additional fees which may apply to your factoring contract:

Re-factoring Charge - Most factors will return invoices back to you if they extend beyond a 90 day period. This may be because the invoice is being contested or cannot be collected.

Underutlisation Fee - Some factors will charge additional fees if you use significantly under the estimated average loan value.

When comparing factoring quotes the service fee and the loan APR should be the two key comparison points but remember: one is expressed as an APR and the other a fixed value!

Click here to compare Factoring Quotes.
Click here to compare Invoice Discounting Quotes.