Contact us
Our services
Invoice Factoring
Getting an order is one thing; getting paid is another
Invoice Discounting
Invoice discounting is another popular form of invoice finance
Asset Finance
There are a number of ways to raise capital apart from the more traditional methods
Equity Finance
With programmes like ‘Dragon’s Den’, most people are aware of how equity finance works
Invoice Factoring
Getting an order is one thing; getting paid is another.
If cash flow is tight and working capital at a premium the sooner you can get paid for a job the better. However with payment terms getting longer and some companies ‘dragging their heels’, you may have to wait longer than you anticipated and that could be detrimental to your business.
The solution could be invoice factoring which enables a company to receive up to 90% of the invoice value shortly after it is issued. This could be within 24 hours of it being raised. The business will then have the working capital which would otherwise be tied up as an asset on the balance sheet.
The factoring company will then take responsibility for the invoice by providing a team of skilled and professional personnel who will diplomatically chase up the debt to ensure it is paid. In effect they will provide a full sales ledger management service so you can concentrate on running the business rather than chasing up unpaid invoices.
It can also provide debtor protection insurance to safeguard cash flow against bad debts.
The important aspects to remember when considering invoice factoring are that it is for commercial transactions only and there has to be evidence that a debt exists. This could be in the form of delivery notes, or proof you have provided a service through time sheets and meeting notes, for example.
Naturally, if you are usually paid immediately then invoice factoring is not for you, as the invoice is paid there and then with no debt outstanding. In this case you will be better suited to Business Cash Advance
Changing factoring provider?
CAS is sometimes contacted by company directors who are keen to change their factoring company.
Read more...
Industry news
Case studies
A hardware store in Leicester approached CAS to ask us to have a look at its current invoice finance agreement and to advise them whether it was getting a good deal.