Here are a few Top Tips when you are considering Factoring Finance for your Business
- Do you really need Factoring Finance – This may sound silly but have you analysed the peaks and troughs of your business cashflow and understand if there are gaps?
- Would you like the factoring finance company to handle all of the credit collection or would you like for your own credit controllers to chase the invoices.
- Give yourself breathing space. For example if you sell on terms of 30 days you may want to negotiate with your factoring company for credit terms of 90 days or even 120 days.
- Consider the alternatives. We at Enable Finance perform a financial review of your business and analyse if factoring finance is going to be suitable for your business.
- Do you need Credit Insurance or Bad Debt Protection? For example if you sell to a small number of customers and lets say one customer represents 30% of your turnover could you stand the financial implications of Bad Debts if that customer went bust owing you money?