A quick look at MoneyFact's listing of current factoring facilities on offer shows that they are in effect secured bank facilities. The bank will charges the equivalent of loan interest, ranging from 0.5% to 5% above a reference rate (such as Bank Base or LIBOR of money advanced). It will also apply a service charge of up to a further 3% of annual turnover of invoices bought under the factoring facility. In addition, banks will charge a factoring facility arrangement fee which can be 1% of the facility amount. Further fees can include a fee to review the factoring facility at the end of each year (with the aim of renewing it). As always, legal fees will be payable to prepare a factoring facility documentation (especially the creation of a legal charge over the entire current and future assets of the company - in favour of the bank), and these fees can be hundreds of pounds (or more).
The above factoring facilities, could not be more different to the simple and transparent single invoice finance service offered by Cash for Invoices Limited , Cash for Invoices Limited does not charge an arrangement fee. Why? Because there is no commitment on the company to sell its invoices. For the same reason Cash for Invoices :Limited does not charge an annual factoring facility review fee nor does it charge a fee to service the factoring facility, or legal fees for documentation. Why? Because there is NO facility NO commitment for a company to ever sell any invoices to Cash for Invoices Limited, let alone the company's entire sales ledger. If a company wants to sell an invoice to Cash for Invoices Limited it can, but if it does not want to then it need not, ever.
What does Cash for Invoices charge for its service? One fee for buying each single invoice, which is time and amount-dependent. Cash for Invoices Limited will hold back from its purchase price up to 10% of the value of the invoice purchased to cover credit risk, and will pay this to the company (seller) when the debtor pays the invoice in full and on time.
Without the plethora of fees, charges and commitments of bank factoring facilities described above, Cash for Invoices Limited's single invoice finance service is simple, quick, and transparent. Look at the features here.
If you need more time, not cash, to pay a supplier, then Cash for Invoices Limited can give you that extra time. How? Cash for Invoices Limited will buy your supplier's invoice thereby taking the immediate payment pressure off you, and will agree with you a future payment date to pay the invoice amount to Cash for Invoices Limited.
Contact Cash for Invoices Limited today for a free no-obligation quote on how much cash you could receive from selling just one invoice, or how much extra time you could be given to pay a supplier invoice.