If, by the nature of your business, you have to sell goods or services on credit terms to your customers and you are trading 'business to business' then you will already know that not only does this implode on your working capital by holding back cash flow, but you also have the risk of non-payment for the supply of those goods or services.
Having found out how factoring works and deciding whether it would be of benefit to your business the next stage is to find a factoring company that meets your requirements
What is factoring and how does it work? What are the benefits and what are the costs? How will factoring benefit my business? What do I need to do to get a factoring facility? Will it allow my business to grow by improving my cash flow?
Outsourcing of functions within a business can be cost effective and gives the business access to specialists knowledge in the functions outsourced. So why not outsource the sales ledger.
Explains how to modify the bookkeeping procedure in maintaining the accounting records of a business after entering into a factoring or invoice discounting arrangement.
