Factoring

An extremely flexible form of cash flow finance is factoring, which grows in line with the business. Sales invoices are forwarded to the factoring company who will immediately advance up to 85% of the invoice value - Factoring is a means of releasing the cash tied up in your sales ledger.

We are Factoring Brokers, arranging factoring facilities for UK businesses. Our factoring brokerage service is FREE and totally confidential.

  • Sales invoices raised for goods and services delivered to your customers
  • Copy sales invoices sent to the factoring company
  • The factor pays up to 100% of the invoice value within 24 hours
  • The factor manages the sales ledger, issues statements, chases the debts and collects payments from your customers

With over 70 factoring companies to choose from, we help you make the right choice for your business.

Our clients range from small family firms through to blue chip organisations. Funding has been provided from a few thousand pounds through to millions of pounds.

Factoring Case Studies

Recourse Factoring and Payroll

Turnover: £750,000

A new start recruitment company supplying nursing staff and teachers to private hospitals and schools within the Greater London district, needed funding to bridge the gap between weekly payments to temporary staff and monthly sales receipts from customers. Sterling Capital Reserve was able to put them in touch with a specialist factoring/discounting company that provides funding and administrative services to the recruitment industry. They now have a healthy cash flow, and full back-office support with the payroll function, freeing up valuable management time.

Stock Finance and Factoring

Turnover: £400,000

Established for just 12 months, our client had quickly built the business up to achieve turnover of £400k during the first year. They had no bank facilities, but wanted a working capital facility in place that would grow in line with sales. Factoring was the obvious choice.

We arranged a factoring facility with an independent factoring company, and were also able to put a small stock finance facility in place. The stock finance facility is particularly helpful, since the goods are imported, and our client typically has to pay suppliers up front, with delivery some 4 weeks later. Our client can now concentrate on growing the business without the headache of chasing debts or worrying about cash shortfalls.

Recourse Factoring

Turnover: £600k

Established around 18 months, our client was experiencing a period of rapid growth, and had recently taken on several new haulage contracts to Europe and the US. Their customers were not bad payers, but they wanted assistance with collections, and a boost to cashflow. Factoring provided the solution to all of their requirements. Debt turn has improved, and they no longer struggle for working capital.

Factoring 2

Turnover: £150k

A sole trader, operating an established private hire car firm, with a mix of his own vehicles and freelance owner/drivers, approached Sterling Capital Reserve for help when his own bank was unable to provide a working capital facility. He wanted to expand the business, but cash flow was poor, due to the amount of cash tied up in his account customers. Factoring was the solution. Sterling Capital was quickly able to arrange a factoring facility, with cash being made available to our client within 24 hours of invoices being received by the Factor.

Factoring 3

Turnover: £100k

Based in London, our client had been making hats and exporting them around the world for over 20 years. They had won some significant new orders, and were outsourcing work in order to meet the increased demand. They needed to generate extra cash to enable them to pay the out workers. They had no banking facility in place, and felt that using their sales ledger to generate funding would be the most flexible way to grow the business. They already had offers on the table from a couple of factoring companies, but were seeking a better deal.
This is where Sterling Capital Reserve was able to help. We arranged a facility with an independent factoring company that specialises in the needs of the smaller business, and was able to offer an excellent and personalised service at a more competitive rate.

Factoring

Turnover: £800k

Our client, based in Buckinghamshire, sells mobile telephones and airtime to over 200 customers. When they approached Sterling Capital Reserve they already had a factoring facility in place, but were unhappy with the confusing paperwork and management information provided.
Their bank recommended their in-house factoring company; however, they proved rather inflexible, and were unable to handle the type of debt and level of work involved. Faced with a vast selection of alternative factoring companies, and unsure where to turn, a business contact recommended they try Sterling.
We put them in touch with a couple of factoring companies, who we knew could handle more 'difficult' types of business. They took the time to understand the client's business and were able to structure a deal accordingly.
The Result: the account runs well, and both client and Factor are happy with the facility and the relationship.