Advancing money as and when new invoices are issued
Factoring can bridge the gap between raising an invoice and getting that invoice paid. Factoring provides the cash flow necessary for working capital and growth. Factoring from Lloyds TSB Commercial Finance is designed for businesses with a turnover greater than £100,000.
There are two major advantages of invoice factoring over overdrafts or other forms of personal or business loans, these are:
- Factoring is flexible in that the amount you can borrow grows directly with your sales. This is essential to enable companies to fund their growth, since you must usually pay your suppliers before you receive payments from your customers.
- No other assets are needed to secure this funding.
How factoring works
When you send out your invoices, we will then advance funds of up to 90% of your outstanding sales invoices, normally within 24 hours. Some degree of credit management can also be built into the facility. We currently assist businesses of all sizes including sole traders and limited companies from start-up to maturity.
The provision of credit or leasing services by us is subject to your meeting our Credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.