Factoring
Factoring is the name given to a full service facility that enables your company to finance your sales invoices as they are raised. Instead of having to wait upto 90 days for your clients to pay outstanding invoices you will have the ability to raise funds against all or some of the outstanding invoices to fund the business. The factoring company will also assist with the collection of the individual debts to help reduce the amount of aged debts. A majority of lenders now provide confidential facilities which mean your clients will never know how you are funding your business cashflow. As the business sales grow, so does the availability of funds, without the need to apply for an increase in the limit as with a normal overdraft facility. ECS can also provide a comprehensive credit insurance policy to cover your sales invoices against bad debt situations.
This service is particularly suited to small companies who do not have their own credit controller or who are short of time on a day to day basis to keep control of the sales ledger payments.