Findng a suitable Factor

There is such a large number of Factoring companies within the UK that charges for their services should be very competitive. The Internet is a great place to start your search as there is an array of companies who can offer a variety of levels to help control your cash flow and invoice system.

Many of the large banks offer a factoring service alternatively there are smaller companies who specialise in this facility. It is a personal choice, but is important to remember that how your Factor deals with your customers and their invoices and any outstanding payments will reflect on your business and may impact on your future working relationship.

Once you have chosen the most suitable Factor for your business you then need to ensure you meet their requirements. Each Factor will vary slightly but in general to qualify, the Factor will want to ensure:

• your company provides invoices to other companies (factoring is not normally offered to retail businesses etc)
• they can arrange a face to face meeting with all owners in the company
• they can see and assess a full set of business accounts
• they have full access to your business plan

Once all of the above criteria has been met it is simply a case of drawing up a contract and agreeing on the terms and conditions of business.

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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