Factoring

Factoring often referred to as ‘debtors ledger finance’, is a way to fund your business by getting the money you’re owed from your debtors’ ledger – NOW!

For small and medium-sized businesses, under capitalisation and poor cash flow are two major barriers to business growth. That’s because they:

reduce your working capital (effectively starving your business of cash purchasing power)
and reduce your ability to service borrowings.

Slow paying customers can only exacerbate these problems, often with disastrous results.

By Factoring, Easy Factors International buys your customer invoices for cash up front (up to 80% of their value, less a factoring fee) and the balance (less interest and charges) is paid to you following invoice settlement by your customers. This means your ability to borrow funds is expanded beyond traditional lines of credit you may have in place and at the same time, your cash flow can be substantially improved.

When should you use Factoring?
There are many situations when Factoring can improve your borrowing ability, such as:

you’ve an opportunity to increase sales, but your bank won’t lend you more money – because they say you’re ‘over-trading’; or:
they want to mortgage your home – which you’re not prepared to do; or:
maybe you have seasonal sales peaks - that your established funding facilities can’t be stretched to cover.

Whichever way you look at Factoring, your borrowing ability is restricted only by your accounts receivable value – not the value a bank or finance company puts on your business.