Invoice Factoring Provides Cash Flow Finance Life Line

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The invoice factoring team at Enable Finance confirm a threefold increase in enquiries and discuss how factoring has helped Companies resolve cash flow concerns.

The Factoring team at Enable Finance Ltd. has reported a threefold increase in enquiries from small to medium sized businesses concerned about cash flow as aged debtors extend.

It's now acutely apparent that the credit crunch has imposed some really tough challenges on UK Business and with Banks reluctant to help or less likely to expose themselves further, Companies are finding themselves under increasing cash flow stress exacerbated further by debtors negotiating for longer payment terms and trade creditors pushing for faster payment cycles.

As businesses are finding it increasingly more difficult to extend their existing overdrafts Enable Finance has come to their aid with a package of cash flow solutions including invoice finance and factoring. A business Factoring its sales invoices is given day one access to up to 95% of the invoice value injecting working capital direct into the business, ensuring the business has continuous cash flow finance that tracks its sales.

Factoring means selling your invoice to a factoring company; who will then be responsible for collecting payment of the invoice from your customer. You will receive up to 95% of the face value of the invoice immediately and your factoring company will then assume full responsibility for the sales ledger. If your factoring facility is a recourse facility, there is no bad debt provision. If the invoice isn't paid, your factoring partner can reclaim the balance from you, after a defined period. If the facility is non-recourse in nature, the factoring partner shoulders the bad debt and cannot reclaim payment from you.

The liquidity Invoice Factoring can bring to a Company's working capital and potential savings that can be achieved by outsourcing the collections department can be the perfect solution for a growing Company not wishing to be held back by working capital or late paying customers.

Companies are urged not to be a victim to the credit crunch, less than helpful banks or traditional funding solutions. If you are frustrated by your Company's cash flow please contact the Business Finance team at Enable Finance Ltd. who are more than happy to discuss your companies funding options and provide free and no obligation quotes

Phillip Evans
Direct +44 (0) 1623 812 902
Enable Finance Ltd. PO BOX 4420 Sheffield. S10 9DR

Notes to Editors

Enable Finance Ltd. Is a UK based Financial Services Company providing Finance to the commercial and residential customer. Enable Finance is authorised and regulated by the Financial Services Authority.


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Phillip Evans