Unlock your cash flow with our flexible invoice factoring services. Get paid faster and grow your business with confidence through our comprehensive factoring solutions.
Invoice factoring is a financial solution that allows businesses to sell their outstanding invoices to a factoring company in exchange for immediate cash. This service helps improve cash flow by providing up to 90% of the invoice value upfront, with the remainder paid once your customer settles the invoice.
At Tapton Capital, we search the entire market for the best factoring solution for our clients. If you need invoice factoring, we will handle the entire process from start to finish, allowing you to focus on your day-to-day business operations.
1. Your business provides goods or services to customers and issues invoices. Once you submit these invoices to the factoring company, you receive an agreed percentage within 24-48 hours.
2. The factoring company takes over the management of your sales ledger and handles all customer communications regarding payment collection.
3. Once your customer pays the invoice, you receive the remaining balance minus the factoring company's fees, which typically range from 0.75% to 2.5% depending on your business turnover and risk profile.
There are several types of invoice factoring to suit different business needs:
1. Recourse Factoring: You remain liable if your customer fails to pay the invoice, but this typically offers lower fees.
2. Non-Recourse Factoring: The factoring company assumes the credit risk, protecting you from bad debts but at a higher cost.
3. Selective Factoring: Choose which invoices to factor based on your cash flow needs, offering maximum flexibility.
1. Immediate cash flow improvement - receive up to 90% of invoice value within 24 hours of approval.
2. Professional debt collection services reduce the burden on your internal resources and improve collection rates.
3. Credit protection options available to safeguard against bad debts and customer insolvency.
4. Scalable funding that grows with your business - the more you invoice, the more funding becomes available.
1. Growing businesses that need working capital to fulfill larger orders and expand operations.
2. Companies with long payment terms (30-90 days) that need to bridge the cash flow gap.
3. Businesses in industries like construction, manufacturing, staffing, and professional services where invoice factoring is commonly used.
4. Companies that want to outsource their credit control function to focus on core business activities.
1. Customer notification: Your customers will be notified that their invoices have been factored and will make payments directly to the factoring company.
2. Credit control: The factoring company will take over your sales ledger management and customer payment collection.
3. Customer creditworthiness: The factoring company will assess your customers' credit profiles as this affects their risk and your funding terms.
4. Contract terms: Consider minimum volume requirements, contract length, and termination clauses when choosing a factoring provider.
Invoice factoring is a financial service where you sell your outstanding invoices to a factoring company for immediate cash. You receive up to 90% of the invoice value upfront, and the remaining balance (minus fees) once your customer pays the invoice.
Once your factoring facility is established, you can typically receive funds within 24 hours of submitting approved invoices. The initial setup process usually takes 3-5 business days, depending on your documentation and credit checks.
Invoice factoring costs typically range from 0.75% to 2.5% of the invoice value, depending on factors such as your industry, customer creditworthiness, invoice volume, and payment terms. We provide transparent pricing with no hidden fees.
Yes, with invoice factoring, your customers will be notified that their invoices have been factored and they will make payments directly to the factoring company. This is different from invoice discounting, which can be kept confidential.
Invoice factoring is suitable for B2B businesses that sell goods or services on credit terms. This includes manufacturing, distribution, staffing agencies, construction, professional services, and many other industries. The key requirement is having creditworthy business customers.
This depends on whether you choose recourse or non-recourse factoring. With recourse factoring, you remain responsible for unpaid invoices. With non-recourse factoring, the factoring company assumes the credit risk, though this typically comes at a higher cost.
