Invoice Factoring:

Boosting Your Business's Cash Flow

At Pinks Asset Finance, we understand that waiting for customers to pay their invoices can strain your cash flow.

Invoice Factoring offers a solution by allowing you to access funds tied up in unpaid invoices, providing the liquidity you need to keep your operations running smoothly.​

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How Does It Work?

Assessment

Step 1

We evaluate your business, industry, sales processes, and customer base to tailor the right solution.​

Application

Step 2

We assist in preparing and submitting applications to suitable lenders, ensuring they understand your business’s unique needs.​

Funding

Step 3

Upon approval and completion of legal formalities, funds are made available, and you can draw down as required.​

What Is Invoice Factoring?

Invoice Factoring is a financing method where you sell your unpaid invoices to a factoring company in exchange for immediate cash—typically between 70% and 85% of the invoice value. 

The factoring company then takes over the responsibility of collecting payment from your customers. 

Once the customer pays the invoice, the remaining balance, minus fees, is returned to you.​

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Key Benefits

Improved Cash Flow

Access funds tied up in invoices to manage day-to-day expenses.​

Outsourced Credit Control

The factoring company manages your sales ledger and collects payments, reducing administrative burdens.​

Flexible Payment Terms

Work with customers who require longer payment terms without impacting your cash flow.​

Accessible to Various Business Sizes

Even startups can benefit from factoring, as lenders can validate invoices directly.​ 

Costs Involved

The cost of Invoice Factoring varies depending on factors such as the lender, your business profile, and the nature of your debts. 

Typically, you can expect to pay between 1% and 4% per month on each borrowed invoice. Fee structures are generally transparent, with minimal setup or commitment fees.​

Eligibility Criteria

Invoice Factoring is suitable for businesses that:​

  • Operate in a business-to-business (B2B) environment.​
  • Sell to customers on credit terms.​
  • Have a reliable sales ledger.​
  • Are seeking to improve cash flow without taking on additional debt.​

​Additional costs may include valuation fees, legal fees, and arrangement fees, depending on the lender’s terms.​

Let's Discuss Your Options

Navigating the nuances of Invoice Factoring can be complex, but you don’t have to do it alone.

At Pinks Asset Finance, we’re here to guide you through the process, ensuring you find the best solution tailored to your business needs.

Reach out to us today, and let’s unlock the potential of your unpaid invoices together.​

Most facilities are flexible, allowing you to choose which invoices to factor without long-term commitments.​

Many factoring companies offer bad debt protection (credit insurance) to safeguard against customer insolvency.​

The process can be swift, with some businesses receiving funds on the same day of application, provided all criteria are met.​

Lenders typically require company financials and an audit trail of transactions, including contracts, purchase orders, proof of delivery, invoices, and payment confirmations.​

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