Factoring & Invoice Discounting - Factoring make the right choice.
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Factoring brokers
To save you time researching and negotiating it is probably best to use a factoring broker, using their skill and expertise they will be able to negotiate a better deal for your companies individual needs. because most brokers receive commissions from the factor, they usually do not charge for this.
D.I.Y. Factoring
If you do want to keep control of your negotiations it is advisable to contact more than one factoring company before you make a tie yourself to a factoring agreement.
Ask the questions.
Be sure to study all the offered by factors are suited for your business and most important are affordable.
Find out how your factor's credit control system operates.
Some factors may want to check or even make depictions about any future customers, so find out the factors policy about this
A factor want to set credit limits on you or your customers make sure these restriction are viable.
Find out the charges for credit protection & credit management
Make sure any charges are reduced as your turnover improves
Preliminary audits of your outstanding invoice may also carry a charge, find out if this is the case .
Finding a factor
There are many factors operating in the UK mostly independent of banks (the Royal Bank of Scotland offers factoring services)and most can be found here or at the Factors and Discounters Association.
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