D B Associates work with a number of factoring and invoice discounting companies, ranging from high street banks to smaller specialist factors.
Using the full range of contacts we can help find the right company with the best service and  rates to suit your needs.
Please feel free to contact us if you would like more information on the options available.

What Is Factoring

Factoring in the UK is one of the most established ways of ensuring there is sufficient cash flow in your business, it is a flexible form of loan, which advances money to a company as it issues new invoices. This is different to overdrafts or loans, which are usually for a fixed amount.
A factoring company will lend a certain percentage of each invoice that you issue, it will then collect the invoice when it becomes due and pay the balance back to the to you . The factoring company charges a fee , usually a percentage of the value of each invoice and interest on the amount borrowed.

The major advantages of factoring compared to overdrafts or other loans are:

Factoring is flexible in that the amount a company can borrow grows with sales.
No other assets are needed to secure the funding.
At the start of a new factoring relationship, the factor will take on existing debtors which can mean a substantial payment being made at the start.
Setting up a factoring deal can be done far more quickly than most other forms of finance.
Factoring unlocks capital due to you as soon as you raise an invoice, allowing you to fund sales growth and business expansion.

Invoice Discounting

Invoice discounting is similar to factoring, but there are some key differences.

With invoice discounting the lender still provides a percentage of the invoices raised, however it is up to you to collect the money, unlike factoring you are totally responsible for your debts.
This may suit you, particularly if you are concerned about the effect that a bank collecting money for you might have on your clients.

Lenders tend to stipulate that a company must have a minimum turnover for invoice discounting  and fees are on the same basis as factoring, although the higher a companies turn over the lower the percentage per invoice.