Invoice factoring is a financing solution where a business sells its unpaid invoices to a finance provider (the factor) in exchange for early payment. It is especially useful for businesses with limited credit control functions, as the factor often manages customer collections and account ledgers.

Once an invoice is issued-with payment terms typically ranging from 30 to 120 days-the factor assesses the creditworthiness of the buyer and advances a percentage of the invoice value, often around 80%, usually within 24 hours. The factoring company then handles debt collection, deducts its fees and transfers the remaining balance to the business when the customer pays.

Improved Cash Flow: Receive payment quickly after issuing invoices, giving your business access to working capital without waiting for customer payments.

Outsourced Collections: The funder handles customer follow-ups and credit control, reducing the burden of chasing overdue payments.

Stronger Financial Stability: With faster payments and predictable cash flow, you can plan ahead, invest in growth and operate with greater confidence.

Operational Support: Factoring providers may help manage your sales ledger, offering added efficiency and freeing up internal resources