The sales ledger is often the largest asset a company has in its balance sheet, yet is frequently the most under-utilised.
Slow paying debtors can be a major drain on a company's resources, and often a couple of months' sales are tied up in the sales ledger.
Factoring and Discounting facilities are useful tools for speeding up cash flow, with generally up to 85% of the invoice value available immediately, with the remainder available once the debtors pay.
Factoring has the additional benefit, especially for smaller companies who do not have in-house capabilities, of a full collections service. Particularly for new businesses, a full factoring facility ensures that the ledger is professionally maintained and your customers chased on a timely basis, without the need to employ someone in this role. This can lead to a critical saving in staff costs.
