Checklist to Factor Debtors

Factoring works like this:

  1. The factoring company manages your sales ledger and provides you with credit control and collection services of all your outstanding debts.

  2. The invoices you issue to customers is sent to the factoring company who advance up to 80% (and sometimes more) of the invoice amount to you. The balance, less any charges, is paid when the customer makes payment directly to the factoring company.

  3. Your customers are advised of the service because they will receive a letter from the factoring company with their invoicing, asking that the payment be directed to them.

  4. The factoring company typically releases funds within 24 – 48 hours after the invoices have been issued.

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