Business
Loans
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factoring invoices .Loads of money due on paper but nothing in the bank to pay the wages! How often have we all been in this situation? While not a business loan as such, factoring can provide the same answer - ready cash. Factoring is based on the provision of funding against invoices raised on credit terms. A factor will pay you, say, 80% of the invoice value when raised. Your customer, the debtor, will eventually pay the invoice direct to the factor 30/60/90 days later, whatever are your terms of payment. The factor will then pay you, the supplier, the 20% balance on the invoice less the factors fees. The factor chases the payments and makes their margin - you get paid most of the invoice promptly. For certain types of businesses invoice factoring works.
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