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Factoring Criteria

Businesses looking for factoring often wonder if they will qualify for a facility or are surprised when they are turned down.

Factoring is a strange form of finance in that it rests less on the financial status and performance of the business but more on the processes you use to raise your invoices and the type of business you operate.

The basic criteria to qualify for a factoring facility are:

  • You need to selling to other businesses
  • On credit terms
  • And raising invoices in arrears of delivery

If you meet these 3 criteria there will usually be a factoring company out there that will be able to offer you a facility.

Other important factors include the customers that you are dealing with, the financial performance of your business, your own credit history and the sector that you operate.

Each factoring company has it’s own criteria and it is important to find lenders who will consider you as a client. By working with Invoice Finance you can be sure you will only be speaking with lenders who can help your business. In doing so, we can find the best factoring facility for your business.

If you are considering a factoring facility and want to know which factoring companies can help you speak to the team at

Invoice Finance Offers
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