Confidential Factoring
Confidential factoring can provide a flexible working capital solution to your business which is confidential and includes an outsourced credit control service. Funding Solutions are experienced in setting up these facilities on behalf of our clients to ensure they are structured properly and that the most cost effective solution is found. Why pay more than you need to?
What are the advantages of confidential factoring?
- It can provide up to a 90% advance against the gross value of your outstanding invoices.
- The facility is confidential so your customers are unaware of your financial arrangements.
- It includes a credit control service where letters and statement are sent out on your headed paper and phone calls are made in your company name. This means you have more time to focus your attention on growing your business.
- Confidential factoring is linked to the size of your debtor book so it grows with your business.
- For many businesses a confidential factoring facility may be more readily available than confidential invoice discounting.
At Funding Solutions we can introduce you to the confidential factoring providers. Importantly we ensure that any facility is structured to meet the needs of your business and we also ensure you fully understand the total costs involved in operating such a facility.
How does confidential factoring work?
Obviously different lenders operate their confidential factoring services differently. That said, while there are slight differences the basics remain the same. Once the facility is set up the following steps are usually applied:
STEP 1: You deliver your goods or service and raise the agreed invoice. This invoice is sent to both the customer and the provider of your confidential factoring. Typically the invoice or batch of invoices is sent to the lender electronically.
STEP 2: The lender will make up to 90% of the gross invoice value available to you and you can draw this money down as you require.
STEP 3: The lender will send out month end statements to your customers on your headed paper. When the invoice falls due they will also send out the necessary reminders on your headed paper. Any phone calls made to chase outstanding overdue invoices will be made in the name of your company.
STEP 4: When the customer pays your outstanding invoice is repays the borrowing against that invoice and pays you the balance of the invoice.
As a revolving and ongoing facility it provides a valuable source of working capital to help grow your business.
How do I set up a confidential factoring facility?
The first challenge is finding a lender that will offer you a confidential factoring facility. Our market knowledge can not only help you find those lenders but we can help you select the right lender for you. This will depend on your requirements and the nature of your business. We will ensure that any facility is set up and structured properly so that the cash flow requirements of your business are met. Alternatively, if you’re looking for more information about our regular factoring service, have a look at out invoice factoring solutions.
