Stop waiting for debtors and have your invoices paid immediately
Waiting for invoices to be paid does no good for your cash flow (or your sanity). Factoring means a third party will buy your invoices for a percentage of what they’re worth (typically around 85%). Every time a new invoice is raised, it goes through the factor, and they pay you the percentage upfront. They manage your whole sales ledger for you and chase down the debts owed by your customers. Once the debt is paid, they pay you the remaining balance and you pay them the agreed interest and fees.
Having someone else looking after your sales ledger gives you one less job to do - freeing you up to do more of what you do best. Factoring companies will also credit check any potential customers for you, to reduce the likelihood of working with those that make an annoying habit of not paying on time.
Here’s an example
A customer owes you £20,000. You sell the invoice to a third party for £17,000, which is 85% of the amount owed. When the third party has collected the full £20,000 they then pay you the remaining £3,000. You then pay them any interest or fees owed for their service.
Why is Satellite Finance right for me?
- We can help you negotiate better terms with your suppliers through our appointed partners
- We ensure that the providers we work with credit check potential customers - so you’re more likely to do business with people that pay on time