The term factoring, though it may seem a term from a high school maths class, is in fact a way for a company to develop their cash flow and expand the capital that the company is working with. Factoring is a payment that is made against your business's sales ledger.
Factoring is not available to every business and you have to meet certain initial criteria in order to be eligible. A business must trade credit terms with separate businesses in order to even think about factoring as an option. Factoring specialists Touch Financial will make this determination. Traditionally factoring is not offered to companies who trade cash or who are retailers.
Once Touch Financial has determined that you are eligible they will look into the business you are seeking to factor. They will look at the business systems that are in place as well as at the customers that your business already has in play.
From this they will make a final determination as to what percentage of the overall sales ledger to charge as a fee and your company will gain its necessary flexible capital. Factors can be companies in their own right, and act independent of banks, while others will be tied to banks or other financial groupings. Whatever the case might be, this will not be a quick sticks online form, it is a face to face process.