Advance of up to 95% of the value of your invoice (your entire sales ledger)
Depends on the product and on your payment terms (e.g. 30, 60, 90 or 120 days)
A weekly or monthly factoring rate of 0.5-5% of the total invoices, with higher rates for longer factoring periods, plus set-up fee (plus extra for bad debt protection)
Usually within 48 hours
To ease cash flow and to minimise late payment and debt – and to hand over credit control to your lender (albeit confidentially)
A broad range of businesses with B2B invoices (e.g. seasonal businesses, those with occasional large projects and those with just a few debtors) who want to keep their factoring arrangement confidential – some providers will work with new businesses
Confidential invoice factoring works on the same principle as normal factoring. You still outsource your credit control to the factoring provider. The only difference is how the lender (i.e. the factoring provider or factor) introduces themselves to your customers. With normal factoring, the provider uses their own name, whereas with confidential factoring the provider acts as your own accounting department, using your company name (and brand) when communicating with customers. If they make or take calls they do so as if calling from your business (with a dedicated phone line).
If you’re concerned about confidentiality, you might also consider confidential invoice discounting and confidential CHOCS.