Factoring - also known as invoice factoring and invoice discounting - can provide businesses with a much-needed cash flow boost.
Factoring allows your business to raise finance from the unpaid invoices owed to you. Depending on the deal you reach with a factoring company, you can access up to 90 per cent of the invoice value within a day of raising the invoice, while the remaining percentage - minus the service fee - is paid to you once the invoice has been settled.
Factoring may also be a clever and resourceful way to manage debt collection and ledger management. A bad debt protection service is also offered as a bolt-on to many invoice discounting agreements.
At Equifax, we believe that one of the best ways to support your company's continued positive cash flow is to conduct thorough credit checks on new clients before you enter into any credit agreements.
Our Business Credit Express reports will reveal potential areas of concern such as payment disputes, late payments, payment defaults, or even insolvency. Identifying these issues in advance can enable you to take control of your cash flow and offer payment terms to specific clients that minimise your company's exposure to potential bad debt.