Courier Invoice Finance & Factoring

What is Courier Factoring?

Invoice Factoring for Couriers!

Courier Invoice Factoring is a financial practice where a Courier sells its invoices to a third-party lender, known as a factor, at a discounted rate. The factor then assumes the responsibility of collecting payment from the customers on those invoices.

Factoring invoices for a Courier can be beneficial as they can access immediate cash flow instead of waiting for their customers to pay.

By factoring their invoices, they can receive a percentage of the invoice amount upfront from the factor, typically around 70-90% of the total value – minus the factors fee. The remaining amount is paid to the courier company once the customers settle their invoices.

How to Factor your Courier Invoices?

The process of factoring Courier invoices usually involves the following steps:

1. Application: The courier company or driver applies to a factoring company and provides information about their business, invoices, and customers.
2. Verification and Approval: The factoring company assesses the creditworthiness of the courier company’s customers. Once they are happy they will approve the invoice based on their evaluation.
3. Invoice Submission: Once approved, the courier company submits their eligible invoices to the factoring company.
4. Advance Payment: The factoring company advances a percentage of the invoice value, usually within 24-48 hours, providing immediate cash flow to the courier company. The factor deducts their fees (discount rate)
5. Collection and Payment: The factor assumes the responsibility of collecting payment from the customers directly. Once the customers settle the invoices, and transfers the remaining balance to the courier company.
6. Ongoing Relationship: The courier company continues to factor invoices as needed, improving their cash flow and reducing the time it takes to receive payment.

It’s important to note that factoring invoices involves fees, and the discount rate can vary depending on factors such as the creditworthiness of the customers. Fees can also vary with invoice volume, and the specific agreement with the factoring company.

Courier Invoice Finance & Factoring

How to apply for Invoice Factoring?

Applying for Invoice Factoring is very simple. Enter your details below or call 0161 8211478 to speak with one of our specialists.

Courier Invoice Finance & Factoring