Cheap factoring for small businesses is now available. Typically the minimum fees levied by lenders made factoring particularly expensive for small businesses with a turnover less than £500,000. Some may argue that there is no such thing as cheap factoring no matter how big your business is but I believe that a cost effective solution now exists.
At Smart Factoring Quotes we have a bundled fee solution which means that you pay one simple fee as opposed to a seperate service fee and discounting fee. For a recourse factoring facility this fee is 1.95% of the each invoice. If you wish to include credit protection to protect you against bad debts this fee increases to 2.95%.
This has been well received by virtually all small businesses that I have spoken to. The benefits include:
- up to 85% prepayment against your invoices providing valuable working capital for your business
- no minimum fees which can prove expensive when turnover dips
- easy to calculate fees which can easily be priced into your product or service price
- optional credit protection to protect you from bad debts
Typically my advice also includes an explanation about hidden costs as detailed in other posts on this forum but with this facility it is easy to use, transparent and easy to understand.
