First, debtors are settling invoices with factors in an average of 62 days, compared with a sectional average of more than 80 days when dealing with companies direct.
Second, factors advance up to 80 per cent of unpaid trade debts as soon as they are incurred - providing the small firm with the regular injections of cash that it needs to keep expanding safely.
Britain's small business community is suffering from late payments and the drought of new bank lending. It needs a fresh source of capital to tide it over the recession, and factoring is an attractive option. Now is not the time to cast aspersions about a service that is proving the lifeblood of many small businesses.
Association of British
Factors & Discounters
20 AugustReuse content