What is factoring?

The word ‘factoring’ derives from the French ‘facture’ meaning invoice.  Factoring covers a range of services provided by a Factoring company where finance is made available against the security of invoices outstanding in a client’s sales ledger.  Management of the ledger is outsourced to the Factor who will often assume credit risk cover in addition.  These days it is often seen as a more flexible alternative than a bank overdraft.  The available facility grows in line with sales.

How does factoring work?

Why use Corporate Liquidity Partners to choose a factor?  There are about 90 factoring / discounting and trade finance houses including factoring in their product portfolio in the UK market alone.  They each have varying selection criteria.  One factor’s acceptable risk is another’s underwriting problem.  Some prefer certain industry types only and many choose to limit their involvement with export debt.  At Corporate Liquidity Partners we aim to make introductions to the most appropriate factor suitable to a clients needs.

What is Confidential Invoice Discounting?

Confidential Invoice Discounting is a form of invoice finance whereby your customers do not need to be aware of the involvement of the financier.  You as client and the financier operate a 'Trust Account' for banking purposes and the client makes payment directly into the trust account as if it were your normal banking account.