How Factoring Works
Any business who sells to other businesses on credit terms is able to factor its accounts.
A factoring facility allows a business to eliminate the gap between the time an invoice is raised and the time payment is received from a customer – thus converting your credit accounts into cash accounts – imagine having COD customers only!!
As a result the cash flow of the business is improved dramatically.
The Factoring Process
||Your business delivers a product to or provides a service for, your customer.|
||An invoice is raised by the business.|
||This invoice is sent to Business Capital Financial Group together with a “proof of delivery” document, such as a delivery docket or a consignment note.|
|Step Four||Upon receipt of your invoices they are scanned and then posted by Business Capital Financial Group to your customer.|
|Step Five||The invoices are processed and funds are deposited electronically into your bank account within 24 hours of their receipt. (Up to 90% of invoice value.)|
|Step Six||Business Capital Financial Group follows up the payment of the account in accordance with your terms of trade.|
||Your customers then remit payments to Business Capital Financial Group.|
|Step Eight||The balance of the invoice (less the factoring fees) is then paid to you.|