What is Invoice Factoring?
Invoice factoring also is a form of invoice financing. In invoice factoring a business gives control of a part or their entire accounts receivables ledger to the lender, wherein the responsibility to collect the debt is passed on to them. Businesses commonly use it to replenish the cash reserves that are suffering from depletion due to too many pending invoices. You can receive an advance of up to 90% in funds against the receivable ledger.
Broc Finance helps you by facilitating invoice factoring, connecting you with a credible lender. We enable you to secure a line of credit against the accounts receivable, by connecting you with credible finance companies.
Salient Features of Invoice Factoring
Invoice factoring carries the following traits that make it easy for businesses to secure funding.
What Businesses can benefit from Invoice Factoring?
Invoice factoring is suitable for SMEs, which are seeking growth or already scaling their development but need urgent funding to stay on the growth track. The following types of businesses can reap the benefits of sourcing invoice factoring.
- Limited companies
- Single traders
- Joint ventures
If we have to point out industries that mostly opt for invoice factoring, then those will be:
- Transport and Distribution
- Staffing/Labour Hire
Most SMEs do not have the infrastructure support to chase the pending invoice collections. A significant percentage of accounts receivable can create a financial deficit, thus disrupting the regular business and long-term growth. These hurdles can either stunt the growth or make it sluggish, which every business owner wants to avoid.
That’s where an invoice factoring comes to their rescue. With the outstanding invoice collections being taken care of, the business owner can focus on the core processes of the organization. It enhances performance and productivity.
Broc Finance offers you complete support in facilitating invoice factoring for you from reliable and credible financial players in Australia.