Invoice factoring facilities are quick to provide cash when all your money sources are tied to invoices that are yet to due. In fact, businesses that solely rely on contractual invoices may need the services of an invoice factoring company in one way or the other. After all, each business must have enough money to run the business smoothly throughout the month.
However, most invoice factoring UK companies that agree to do business with startups do it on the condition that they collect and handle all your invoices. This also means that they will be responsible for collecting your debts or asking for payments from some of your clients. But if such an agreement sounds too unrealistic, don’t lose hope with invoice factoring UK services. There are many facilities that offer secret factoring services, but only if you meet certain requirements.
For instance, business with an established track record when it comes to handling debts and managing their invoices can easily become eligible to this secret agreement. In any case, the financiers are always interested in offering their money to a company that can demonstrate an ability to handle invoices, handle supply chain management and do great delivery paper work. However, if your business is prone to offering so many discounts and “contra arrangement” services to customers, your chances of getting a secret invoicing agreement may be slim.
The good thing with a confidential invoice factoring UK facilities however is no one will ever send mails or make calls to your customers for any reason. The only involvement with the lender will be when sending you money or asking you to update your bank details should they want to change or increase efficiency in how they receive and handle repayments. The confidentiality also ensures that your working relationship with your customers will forever be smooth, as all money issues will be between you and them.
As we had earlier stated, invoice factoring companies always shy away from doing a confidential agreement with a startup business. They mostly go for business that have been in business for at least two years, business with no tax arrears or businesses that do not invoice progressively. Startups shouldn’t lose hope however. In the UK for instance, there are companies offering startups confidential invoice factoring if they can provide proof of delivery or proof of debt documents.