When securing the right financing, it’s essential to understand the options available to support your business’s growth and stability. One powerful solution? Invoice factoring. Here, we’ll cover how invoice factoring works, why it might fit your business, and the distinct benefits of partnering with Peak Cashflow.
Invoice factoring allows businesses to unlock the value of unpaid invoices by selling them to a third-party finance provider. In other words, you get immediate access to cash tied up in outstanding invoices without taking on debt. Unlike a loan, you’re selling a business asset – your accounts receivable – making it a smart option for businesses looking for liquidity without increasing liabilities.
With invoice factoring, Peak Cashflow purchases your invoices, typically advancing up to 90% of their value upfront. We then handle all aspects of credit control, from payment reminders to collection, and once the customer pays, you receive the remaining balance minus our fee.
Here’s what sets us apart:
Immediate Access to Cash: Gain up to 90% of your unpaid invoices’ value right away.
Full-Service Credit Support: Our credit team works directly with your customers to ensure prompt payment while handling statements, collection letters, and even legal action if necessary.
Bad Debt Protection: Combined with factoring, our Bad Debt Protection feature safeguards your business from unpaid invoices.
Proactive Credit Checks: Each potential customer undergoes a credit check, helping you build a reliable client base from the start.
Real-Time Advice and Support: With our dedicated client support, reach us anytime for hands-on guidance, both in-person and over the phone.
While factoring can be an invaluable tool, whether it’s the right fit depends on a few considerations:
Business Size and Invoice Volume: Factoring can be highly beneficial for businesses with steady, creditworthy clients and consistent invoicing volumes.
Financial Strength: Forecasting cash flow and understanding your business’s seasonal trends will help ensure that factoring supports your business at the right times.
Readiness for Financial Review: Before you get started, a financial audit and providing reasonable financial statements may be required.
Invoice factoring isn’t just about boosting cash flow. It’s about freeing up your team, gaining peace of mind, and empowering your business to focus on growth.
For a personalised discussion about how invoice factoring can support your business, contact Peak Cashflow for a free 45-minute consultation.
give us a call on 0121 236 7575
or email us on info@peakcashflow.co.uk
Pete is based at our Birmingham office in the Jewellery Quarter. Pete spent 10 years working in the mid-market banking sector in both London and the West Midlands. In 1999, he left the banking environment to work in the invoice finance sector, progressing to Director of a medium-sized listed provider. Pete’s responsibilities include: New business acquisition • Underwriting and client management across a wide portfolio • Client care and maintaining the highest service levels within the industry.
Peter Stanton
