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Guide to Factoring

Frequently asked questions about Factoring

FAQ Travel InsuranceQ. Once a contract has been drawn up are you tied to that particular Factor?

This really depends on the terms and conditions of the contract. Before you enter into any contractual arrangement it is always wise to check termination rights. It is common for there to be a 90 day notice period but this could differ depending on debts outstanding etc.

FAQ Travel InsuranceQ. How soon is the cash made available once the contract is agreed?

The Factor will usually be in a position to forward the agreed balance of the invoices within a few days of the contract being received. This will be different with every Factor.

FAQ Travel InsuranceQ. Is factoring used only for businesses who have lots of outstanding accounts?

No, Factoring is used by thousands of companies throughout the UK simply to receive payment faster than they would if they waited for the customer to pay. Even if the customer was to pay on time, this could mean having to wait up to 90 days in some cases for the account to be settled. Factors pay the majority of the invoice as soon as it is raised, instantly improving your cash flow.

FAQ Travel InsuranceQ. How much do Factors charge for their services?

Obviously charges are set within individual companies and fees will vary but charges generally tend to be around 10% of the invoice.

 

 

Guide Contents

Factoring
Key Features of using a Factor
Finding a suitable Factor
Frequently asked questions about Factoring
Where to get more help and advice about Factors

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