Factoring

Factoring is a flexible form of finance, which advances money to a company as and when it issues new invoices

Factoring can bridge the gap between raising an invoice and getting that invoice paid. Factoring provides the cash flow necessary for working capital and growth. Factoring from Lloyds TSB Commercial Finance is designed for businesses with a turnover greater than £100,000.

There are two major advantages of invoice factoring over overdrafts or other forms of personal or business loans, these are:

• Factoring is flexible in that the amount you can borrow grows directly with your sales. This is essential to enable companies to fund their growth, since you must usually pay your suppliers before you receive payments from your customers.
  
• No other assets are needed to secure this funding.

How factoring works

When you send out your invoices, we will then advance funds of up to 90% of your outstanding sales invoices, normally within 24 hours. Some degree of credit management can also be built into the facility. We currently assist businesses of all sizes including sole traders and limited companies from start-up to maturity.

Manage business growth with factoring

Whether you are a new start business or you’re enjoying healthy growth and increasing sales, or you're considering expansion, unpaid invoices can really constrain your business. If you are thinking about expanding, the last thing you need is unreliable cash flow. This is where the right factoring provider can help you.

It's a fact of business that many customers delay settling invoices for as long as possible. In many cases you may have to wait 60 days or longer before invoices are settled. This all adds up to bad news when you still need to pay your staff and suppliers on time.

Without the right amount of cash flow when you need it, you may well have to divert precious resources to chasing payment when you should be chasing new business.

Why factor with Lloyds TSB Commercial Finance?

• If at the end of the initial six months you are dissatisfied with our service you may claim a refund of the service fee you have paid during that period. All we ask of you is the opportunity to resolve any concerns that may occur during this time (see our Business Charter for more information)*
• We don't have single customer concentration limits
• We advance up to 90% of the invoice value when ever possible
• We offer an optional 'bolt on' of Debtor Protection facility which compliments your funding by protecting you against bad debts, allowing you to seize opportunities with confidence.
• We can negotiate on your behalf exit fees from other factors.

* Terms and Conditions apply (see Business Charter)

The provision of credit or leasing services by us is subject to your meeting our Credit approval.  Please ensure that you only apply for credit or leasing services that you can comfortably afford.