How Does Factoring Work?

Invoice factoring is a source of business finance which allows companies to bridge the cash flow gap associated with trading on credit terms by releasing cash against the value of unpaid invoices.

With a dedicated sales ledger management service often included, and access to up to 90% of an invoice’s value within just 24 hours of its issue, this funding facility has many benefits for businesses.

But how does it work? Take a look at our diagram to see the invoice factoring process explained step by step.

Hilton-Baird Financial Solutions is an independent commercial finance broker that specialises in invoice finance. Call us on 0800 9774833 or request a call back to discuss whether factoring would be suitable for your business and get introduced to the most suitable facility.
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