This is an innovative, hybrid product and offers the best of both worlds – the credit control and the cash advance of a factoring facility, with the confidentiality of invoice discounting.
How does confidential factoring work?
1. Like factoring, you send your invoice and POD to both your customer and the factoring company and, within 24 hours you have access to up to 90% of its value.
2. Unlike factoring though your invoice does NOT have an assignment notice attached.
3. Credit control is carried out by the factoring company but in YOUR name.
4. Your company will be given a unique telephone number so if clients call to query an invoice/return a call, then the factoring company will answer in YOUR name. If they can’t resolve a query it will be referred to you.
5. Your customer pays into a Trust Account from where the factoring company takes their payment and the remainder is transferred to you.
Confidential factoring is used in situations where a business wants invoice discounting but perhaps the internal systems don’t support it. Or, perhaps where a business is going through a pre-pack and has had invoice discounting previously but are no longer seen as suitable. It is also very useful where a business wants to outsource its credit control but doesn’t want customers to know they are working with a factoring company.
Benefits of confidential factoring
1. You retain your customer relationships – your customers are unaware that a factoring company is supporting you
2. It frees up your time by providing credit control (in your name), leaving you to get on with running your business
3. Access to up to 90% of your invoice value within 24 hours
4. You can have the option of including bad debt protection, insuring you against customers failing, therefore giving you peace of mind
5. A dedicated account manager and credit controller who will work with you to get the most from your facility.
Not all factoring companies offer this product, so give us a call on 0845 180 1188 to discuss the options.