Factoring

Invoice Factoring facilties to release funds
tied up in your invoices

What we offer

Unsecured Business Loans

A traditional Lending Facility with no rates starting as low as 1.3% APR.

Invoice Finance

Release funds tied up in your invoices within 24 hours.

Secured Business Loans

Similar to its unsecured counterpart, but with security offered, typically a property or asset, with equity attached.

Asset Finance

Gain funding, or refinance, assets within your company, such as equipment, plant or vehicles.

Benefits of Factoring facilities

Factoring is a type of funding solution, sometimes known as Debtor Finance, that allows businesses who issue invoices to sell them to a lender, to advance the payment, rather than waiting out lengthy payment terms. This goes alongside Confidential Invoice Discounting (CID), Client Handles Own Credit Control Services (CHOCCS), and Spot Factoring facilities under the Invoice Finance umbrella. Waiting your payment terms for all of your issued invoices can lead to cashflow issues, and a factoring facility can remove this stress on your finances. A factoring partner can advance you up to 100% of your invoices value, and the remaining balance minus any fees will be paid to you once your customer fulfils their payment. The amount of credit accessible through this facility will depend heavily on your industry, with some having access to higher prepayment percentages.

The cost involved with a Factoring facility, are as follows:

The Service Fee covers the cost of the administration for the service the lending partner gives you. This involves the running of your facility, the collecting, and the processing of your payments.

The Discount Fee is equivalent to the typical interest fee you would be given on a loan. This covers the cost for the facility itself, and is typically between 1-5%.

The Arrangement Fee covers the cost of tailoring and building your facility. This varies from lender to lender, and will depend on a few factors, such as the size of your facility, and the nature of the product.



How does Debtor Financework?

1. Complete your works, and raise the invoice as you always have prior to the facility being put in place.

2. Send a copy to your factoring partner. They will process the invoice, and verify this with your customer.

3. Recieve your agreed percentage of the invoice payment directly to your business account within 24 hours of it being processed..

4. Your customer pays the full value of the invoice credit to the facility provider.

5. The factoring partner will forward you the remaining balance minus any credit due.


For more information about Factoring, or other Invoice Finance products, please check out our FAQs, contact us or apply online today.

Invoice Finance Products

Invoice Factoring

Factoring is a funding solution tailored to your business, aimed at those who rely on payments from customers.

Confidential Invoice Discounting

Confidential Invoice Discounting is ideal for larger businesses, where the role of the lender is not disclosed to your clients.

CHOCCS

A Client Handles Own Credit Control facility enables you to remain in control of your payment collection, directly from your clients.

Spot Factoring

Spot Factoring allows you to pick and choose the invoices you require funding rather than a whole turnover arrangement.

Eligibility Information

Turnover

Unless you are a new start-up company, the minimum turnover most lenders will deal with is £100,000.

Trading History

Similarly to Turnover, start-up companies can get funding. Once you have filed accounts for the year, we can then apply you as a fully-fledged trading business.

UK Registered Businesses

Due to us dealing with UK Based Lenders, we can only find funding solutions for UK Registered Businesses.

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FAQs & Information Centre

How much will a Factoring facility cost?
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There are two fees involved with a Factoring facility. The service fee is calculated against the companies turnover, and covers the cost of the lenders service for the facility, including dealing with the collection of the funds, the administration, and the lender maintaining the company’s sales ledger. The other fee involved is the discount fee (interest) this is charged against the money the company borrows from the lender. This is charged daily, and applied monthly. The typical service fee is around 3% annually, and a standard discount fee is around 4.5% monthly.

Am I eligible for an Invoice Finance facility ?
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Eligibility varies largely from lender to lender, with some much more flexible, some much less. The basic criteria for applying for a Factoring facility is as follows:
£250k minimum turnover
UK Registered Business
If you don’t meet this criteria it isn’t the end of the road, other funding options are available, and this can be discussed with one of our consultants.

How long does it take to arrange a Factoring facility ?
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Factoring facilities can be completed in as short as a few days, although the process can take longer. Our aim is always to make the process as quick, and simple as possible.

How much money can I get through a Factoring facility ?
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Factoring facilities have varying amounts of accessible funds. Rather than a monetary maximum amount of monies available, Invoice Finance is calculated by what percentage of your invoice can be advanced. Most lenders can advance up to 90% of your invoice value. The percentage of your invoice being advanced also depends on which industry you operate in, with some being more/less preferable.

Why JD Capital Finance?
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We are not your average broker. We strive to find you the perfect funding facility for your business, in the easiest way possible. We designate a member of our team of specialist finance consultants to you, walking you through the entire process until the funds are in your hands.

For more information about any products we can advise you on, please contact us.

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Disclaimer: JD Capital Finance helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. JD Capital Finance can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. JD Capital Finance may receive a commission or finder’s fee for effecting such introductions.

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