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What is Factoring? Find out from the Bibby Financial Services blog

At Bibby Financial Services, we recognise that businesses have specific needs when it comes to managing their finances. In a time when cash is king, what can you do to help finance your business when things are tight?

You may have heard of Factoring but are not entirely sure what it is. Don’t worry – in this blogpost we will explain what Factoring is and we’ll also explain how it can really help your business.

Invoice Financing and how it works

Factoring is a form of Invoice Finance. There are two main types of Invoice Finance. Factoring and Invoice Discounting. In this post we’ll concentrate on Factoring which is a lifeline for many businesses.

Factoring allows you access value in unpaid invoices, via a flexible funding and collections service. What does this mean in layman’s terms? It means that with Factoring you can get access to money your business is owed before it’s even been paid.

Factoring

Bibby Financial Services make Factoring as simple and as straightforward as possible.

All you need to do is…

  • when you invoice a customer for work, send the invoice to the customer and a copy onto Bibby Financial Services. Within 24 hours you will receive an agreed percentage of the value of the invoice (often up to 90%)
  • when your customer pays, we’ll send your business the remaining per cent minus our fees

If your business has specific requirements Bibby Financial can tailor a solution to your own set of circumstances.

What are the benefits of Factoring?

If you’re struggling with cashflow, Factoring can instantly free-up your money. A Factoring service will also save you time as we can help manage credit control and give assistance with your sales ledger.

You can even get protection from bad debts and customer insolvency with our Bad Debt Protection service which you can add to your Factoring facility.

Will my customers know that I’m using Factoring?

If you would prefer, we can make sure that your customers don’t know you’re using our services through our confidential facilities. We can offer Factoring completely confidentially and you can maintain your personal relationship with your clients.

We offer this service to many of our clients who find that this is a good balance between outsourcing credit control to experts while maintaining the relationships they have built with their customers.

Our comprehensive Factoring service includes:

  • your own individual point of contact
  • a live online account available 24/7
  • an expert team to collect and allocate your clients’ payments

Who are Bibby Financial Services?

Bibby Financial Services are the largest independent Factoring and Invoice Discounting Company in the UK. We’re family run, we’ve won industry awards and we’ve been helping businesses for over 28 years. You can find out more about why you should choose us by reading testimonials from Bibby Financial Services own customers.

If you think Factoring could help your business please contact Bibby Financial Services for some expert advice.

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