A steadily increasing number of local firms are turning to factoring companies in Glasgow. They are doing so to help them to raise extra finance, which they often cannot easily find elsewhere.
Firms are realising that they can use what their customers owe them in the form of outstanding invoices as collateral for short-term loans. This is great news, because virtually every company has money owed to them by their customers, so a wide range of firms can take advantage of this form of finance. It is a finance option that is not limited to big, well-established firms.
How factoring works
The process is easy to understand and simple to carry out. If a firm is owed £1,200, they can borrow up to £1,080 (90%) from us at Invoice Finance Scotland. When that invoice is paid, the loan is paid off, along with our fee.
Firms in the area are using factoring companies in Glasgow for many different reasons. Of course, they all need money, but why they need it varies.
Every firm, regardless of how big they are, has times when outgoings outstrip what is coming in. In some cases, this is seasonal and in others, this happens suddenly – for example, when a big order falls through. Regardless of the reason, invoice factoring can be acquired from factoring companies in Glasgow from businesses working to get past these cash flow issues.
Many firms use this kind of financing to buy the raw materials they need to fulfil an especially large order from a new customer. This means factoring can actually help a company to grow.