If your business is already large enough to afford the staff and information
systems to efficiently manage and collect your outstanding invoices you
may want to consider an invoice discounting rather than factoring service.
It is identical to factoring except that the sales ledger management -
the collection responsibility - remains with you. The service is undisclosed
to the customer.
Again there are two costs: An administration charge, either a flat fee
or a percentage of turnover and an interest charge for the cash advances.
Rule of thumb: if your business has an annual turnover of more than £1
million and an own accounting system, you may want to look at invoice
discounting.
This is a choice you have to make but whatever you decide we can help
you get in contact with the correct company to meet your needs. Click
here to get competitive invoice factoring quotes for your business.
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