Securing the best Factoring deal for your business

Factoring is a type of Invoice Finance, designed to help ease cash flow issues by releasing cash tied up in unpaid invoice. Factoring companies will advance up to 95% of the cash tied up in unpaid invoices, with cash typically made available within 24-hours.

In addition to providing you with a flexible form of finance, the Factoring company will also manage your sales ledger, credit control and payment collection. This provides you with more time to focus on other areas of your business, such as generating incremental sales.

Invoice Discounting is another form of Invoice Finance, which again provides you with access to cash you’ve already earned. The main difference is you retain ownership of your sales ledger. Learn more >>

Unlike a business loan or overdraft, Factoring typically requires less personal security from directors. This is achievable as the cash the lender releases from your invoices is secured against your future income, i.e. cash you’ve already earned, but not yet received.

Touch is the UK’s largest independent Factoring broker. Our experts help over 650 businesses explore their financing options every month, resulting in us raising over £2 million in funding. The secret to our success is simple:

We search the market, introduce you to the most suitable lender, help you get your money quicker and better still we won’t charge you a penny!

Benefits of Factoring

  • ‘Try before you commit’ – the typical Factoring contract is 12 months. We have access to a facility which will allow you to trial on a 30-day rolling agreement!
  • Smooth your cash flow – by removing the gap between raising invoices and receiving payment.
  • Protect yourself from bad debtors – most Factoring companies offer credit protection which is designed to protect your income should any of your customers become unable to pay their creditors.
  • Free expert advice – most lenders offer expert advice to start-ups and growing businesses, such as assistance with business plans, financial modelling etc.

How Factoring works in practice…

  • Step 1 – Your business provides a service or deliver goods to your customer(s).
  • Step 2 – You then raise an invoice as usual, sending a copy the customer and also the Factoring company. Most Factoring companies allow you to upload invoices online. This helps you get your money quicker!
  • Step 3 – the Factoring company will then make a pre-agreed percentage of the invoice value available to you. The cash is typically available within 24-hours of the Factoring company receiving your invoice.
  • Step 4 – The Factoring company will collect payment from your customer.
  • Step 5 – Once the lender has collected payment they will return to you the full amount, minus the cash already advanced and any fees.

Your business could be eligible to Factor invoices, if you:

  1. Raise invoices to other business
  2. Are based in the UK
  3. Offer credit terms of between 30 and 120 days
  4. Projected turnover for the next 12 months is over £50,000

Compare Factoring companies to find the best deal

  1. We search the market – we’re partnered with over 20 of the UK’s leading lenders. We know what each lenders ‘sweet spot’ is and who offers the best rates, ensuring you get the best advance rate, low interest rates, award winning service etc.
  2. Introduce you to the most suitable lender – once we understand your business we will short list and recommend two or three lenders best suited to your requirements.
  3. Help you get your money quicker - by introducing you directly to the relevant people in each lender we can help setup a facility in 14 days, the industry average is 8 weeks.
  4. Provide ongoing support – our team of experts will keep in regular contact to ensure everything is running smoothly
  5. We won’t charge you a penny – our expert advice is completely free and there are no hidden fees, this is possible as we receive commission upon successful introductions – much like a mortgage broker!

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