Factoring for Hauliers

We seem to have had a few enquiries lately from haulage businesses, some of which are new to the idea of factoring and some looking to switch away from an ‘ill-fitting’ facility. Factoring works for hauliers well and the factoring providers have historically been keen to help – but some seem much keener than others.

Invoice Discounting

At its heart Invoice Discounting contains the basic characteristic of Factoring in that it’s the sale and purchase of a businesses accounts receivable at a discount. The core aspect that stands invoice discounting apart from factoring is that invoice discounting is usually a confidential agreement. Under the terms of a traditional Factoring facility all invoices raised carry a stamp disclosing a businesses use of the facility, with Invoice Discounting there’s no such disclosure.

As with Factoring a very simple calculation can be performed by taking a businesses sales ledger balance (business customers only) and working out 80% of this figure.

This is how much money may be available instantly so if it’s a materially larger figure than the business receives by way of an overdraft then there may be benefit in exploring further.

As can be expected from a business funding tool there are hoops to go through with lenders before the benefits of the facility can be realised.

Just Factoring is a specialist, independent and importantly, experienced brokerage that helps businesses through the often complex process.

New Start Recruitment Business – Ready, Steady, Cook!

We had a call today from an individual looking to set up a recruitment business for chefs. His personal bank would not help, mainly as he is not a home owner. We have put together a sensible business plan and brought in a couple of possible factors to compete for the business, so far one has already come back with an in principle offer. There are a lot of providers competing for business so even if the bank says no, there may still be help out there. Finding money is not that easy which is why a specialist, independent, broker can add value.