What is Confidential Factoring?
Factoring is a type of Invoice Finance used by many businesses to help release the cash tied up in outstanding invoices. Lenders typically advance up to 90% of the invoice value (less fees) with the remaining 10% paid to the business when the debtor pays.
Confidential Invoice Factoring: This is a type of invoice finance where a business borrows money against its outstanding invoices but the lender maintains a credit control service in the name of the business.
This is often preferred by many businesses as they do not wish to allow their customers to know that they are factoring.
The borrowing arrangement are usually confidential, meaning customers may not be aware of it.
What is the difference between normal factoring and confidential factoring?
The key difference is how the credit control function is completed. If the facility is confidential then the lender will complete the credit control in the name of the business.
If the facility is not confidential then the lender will complete the credit control in their own name. The customer is aware of this at the outset and your customers are aware of the lenders involvement in funding your business.
This type of funding solution is now becoming highly flexible. In years gone by a business had to sell all it’s invoices to a lender. In todays climate a business can now be selective and can pick and choose how they use the facility.
The key benefit of using Invoice Factoring is to help free up funds from unpaid invoices. Many businesses benefit from the release of funding as it helps relieve the cashflow pressure on the business. The option of turning outstanding invoices into cash is vital for the survival for many businesses.
Why use a broker?
As experienced brokers in the Factoring sector and with over 20+ years experience we are able to offer a wide range of solutions.
We are experts in our field and we look to obtain the best terms for all our Clients.
The best thing about working with us is that we do not charge any fees. This means there is absolutely no cost to your business.
We work with a panel of over 50 UK lenders. Our vast panel of lenders means we can source all types of facilities nationwide. This ranges from a full Invoice Factoring to a Single Debtor facility.
With so many Invoice Finance providers competing for your business, it can be difficult to know where to start. All Star Funding Solutions are able to advise and negotiate the best rates on behalf of your business.
We know the market and can save you time and money sourcing your next lender.
All Star Funding Solutions Ltd are an Independent Commercial Finance broker and not a lender. We are based in Manchester but have a nationwide coverage and a major presence in London.
As we are independent we can offer the best impartial Invoice Finance quote tailored to your business needs.
With a panel of over 50 UK Invoice Finance lenders and can find you the best solution
We work with all types of Invoice Finance lenders. It doesn’t matter if you are looking for funding against a single invoice, a single debtor or a full sales ledger we can help you find the right invoice finance option at the lowest rate.
Call us today or enquire online.
Finally to get started, click below or give us a call on 0161 8211478 to talk through your requirements with one of our experts.
We are FCA (Financial Conduct Authority ) authorised which means you can be assured of a great service.
Some of our specialist areas of Finance are:
- Asset Based Lending
- Asset Finance
- Business Loans
- Cashflow Finance
- Invoice Discounting
- Single Invoice Finance
- Trade Finance
- Stock Finance
- Credit Insurance