How factoring can help your business to survive

For many companies times are tough. The economy is sluggish, credit has been crunched and getting paid, by even your most loyal customers, can sometimes take longer than is good for you.





Making money can be an expensive business. Organisations often have enormous financial commitments - the purchase of materials, labour, infrastructure and other essentials needs to happen before they stand even a chance of reclaiming their investment through sales. To make matters worse, once you do start selling your products and services customers often delay paying you until the last moment and you can quickly end up with cash flow problems. The financial realities of running a company are that in many instances it's often easier to sell a product or service than to get paid for it. Even if you run a successful company it's important to appreciate that it can take months or even years to start turning a profit.





How do you sustain your business, keep producing and keep selling when payments are slow to arrive?





Use invoice factoring and invoice discounting to raise working capital





The concepts of invoice factoring or invoice discounting are simple. Both generate quick cash by unlocking the value in your unpaid invoices. Each can provide an important role in helping organisation survive periods of weak cash flow and raise working capital with which to move forward.





In the case of invoice factoring it is simple to generate instant funds or save on administration overheads by selling your outstanding invoices to a third party. They take on your debt and pay you for the privilege. It's simple.





Invoice discounting differs slightly in that although you retain the debt on your balance sheet, you will be lent a sum against it, normally in the region of 85% of the invoice value. It's like an alternative form of overdraft funding and again can ease cash flow and release working capital.





Flexible and convenient methods of releasing cash invoice factoring and invoice funding put small and medium sized businesses back in control of their finances.









Companeo helps SME's decision makers, self-employed professionals and retailers to find products like Invoice Factoring.

Additionally, large associations and local communities can use Companeo to help find services like Invoice Discounting, managing such activities free of charge.