Invoice Factoring Services

Tailored funding and credit control services

Invoice Factoring

Invoice Factoring

You can sell us your accounts receivable so that you get quick cash and we'll collect it from your debtors.

Invoice Discounting

Invoice Discounting

We can pay you for accounts receivable to give you quick funds, and allow you to collect the payment yourself.

Spot Factoring

Spot Factoring

We can buy one of your account receivable for quick capital and we will collect the account from your client.

Invoice Factoring

What is Invoice Factoring?

Invoice factoring is where a business will sell any produced invoices to a third party.

This allows the business to keep the cash flow going, saving them the trouble of chasing down businesses to pay their debts.

Currently, around 45,000 businesses in the UK use factoring to keep their business running smoothly.

How does Invoice Factoring work?

If you were to choose our experts to collect your payments it would work as follows:

  • We would come to an agreement with your company where our experts will manage your credit control and sales ledger for a fixed period or on a continual basis, whichever suits you best. This may vary for business to business due to what best suits your needs.
  • If you enable us to do this for you, we will then advance you payments upfront, whenever you invoice a customer for goods or services. Depending on your business this can be anywhere from 70 – 90% of the original invoice. – When the invoice is collected by us, and your customer decides to pay we will then make the remaining balance of the invoice available to you. This will be minus an agreed fee with yourselves.
  • The invoice will be collected by our friendly and professional experts which will free up more time for you to focus on what matters, running your business.
  • We understand that your relationship with your clients is of paramount importance to you and your business, and that is why our friendly collections team will work to ensure that relationship is looked after, ensuring future business for you and your company.

What are the advantages of Factoring?

We can release the funds tied up in unpaid invoices for you and your company by taking the debt on ourselves and then collected it from your customers later.

When using factoring it makes cash flow much easier for you and your family.

Moreover, we can manage the credit control of your company, saving you a lot of administration time having to chase down customers who are yet today.

Are there any disadvantages to Factoring?

  • Your business needs a high turnover for this to be a suitable option for you, usually we recommend that you use invoice factoring if your business has a turnover of over £500,000 per annum.
  • Some clients may find the contracts too long for their business, typically we look for a contract of around 24 months.
  • Some companies may only have a few clients, perhaps one or two, if this is the case you may choose not to use invoice factoring, as it could be much easier for you to collect the invoices yourself.
    The process for invoice collection from your customers may not be that time consuming if you only have one or two clients, if that is the case it may save you money and time not using invoice factoring.

If you feel invoice factoring is right for you and your business, why not contact our professional, friendly experts who can talk through your options with you.

Perhaps we can remove some of the stress of chasing customers for money and improve your businesses cash flow.

Invoice Discounting

What is Invoice Discounting?

Invoice discounting, much like invoice factoring, releases funds from your invoices before your client has paid, allowing you to grow and expand your business.

Both terms are talking about the same process, in part.

The funds owed by a client can be released before the client pay, essentially giving you an advance on their payment, if you use invoice factoring or invoice discounting.

This allows you to invest in your business’ growth and it keeps your funds steadily coming in as opposed to having to wait for a customer to pay.

Invoice factoring and invoice discounting since the credit crunch, have become one of the leading ways that businesses can find working capital finance for their companies, as heavier restrictions on unsecured loans have been in place since the financial crash.

For banks and private companies, this is a much safer way to lend companies money, as the invoice acts as collateral for the advance payments.

Many banks and companies are now moving onto this model which they feel is a much safer way to lend money.

How Does Invoice Discounting Work?

  • After you have provided your services or goods to your customer you send them an invoice – then you send us your invoice details.
  • We make a certain amount of the funds of the invoice available to you within 48 hours, depending on your business this can anywhere from 70-90% of the invoice value.
  • Depending on the agreement you have, either your credit control team, or our own credit control team will then carry out the collection procedure for the invoice.
  • When your customer pays, the remaining balance of the invoice becomes available for your company, minus a service fee.

What is confidential invoice discounting?

This is where we arrange invoice financing with you confidentially, confidential invoice discounting.

This means that neither your suppliers or customers will know that you and your company are receiving advances on the invoices you generate for your customers before they pay them.

What are Invoice Discounting Funding Limits?

When we look at providing invoice discounting to companies, often we will not look at individual debtors to your company, we will look to protect ourselves from insolvency of your company and will work with you if you have a wide base of customers.

So, if you have only one or two customers, this may not be the best option for your company. We also state that only a percentage of your sales can be to a single client, this percentage may vary based on your business or whom that client is.

Much like spot discounting, selective invoice discounting is where your company will enable a third party to collect the payments from a single client, getting an advance from the third party of a certain percentage.

Normally, our factoring teams will look at the whole turnover of your company, and collect the entire sales ledger for you, however it can be arranged that only part of the sales ledger of your company is collected in this way.

Why not contact our professional and friendly team to talk this through?

What is Whole Turnover Invoice Discounting?

This is different to spot financing, or selective invoice discounting whereby a third party will collect the entirety of every invoice generated by a company and will pay a certain percentage of the invoice to do so, releasing the rest of the funds on collection of the invoices minus a certain arranged fee.

To discover what we can do to help in this and remove the stress of chasing down clients, why not contact our factoring specialist?

How can Payroll Heaven help with Invoice Discounting?

At Payroll Heaven our factoring experts can work with you to find the appropriate invoice discounting solutions.

Whether you choose to have us work on the whole of your ledger or a selected part of your ledger, you can get an advance on the funds of your invoices.

It makes it easy to access quickly the funds that your company needs to expand and grow and ensures a steady cash flow into your business.

The support you can expect:

  • Fast funding decisions, easy set up and quick funds into your account.
  • An easy, straight forward experience, saving you a lot of stress and worry.
  • Competitive rates from us.

Why not contact our factoring experts and see what help they can give you and your company?

Spot Factoring

What is spot factoring?

This is where a company will sell an individual invoice to a third party, or a spot factoring company, or factor.

They will usually sell the invoice at a discount and receive money very quickly into their account not having to wait for the client to pay.

This is often referred to as single invoice factoring, or selective invoice discounting, or spot invoice finance.

How does Spot Factoring work?

  • The business will sell a single invoice. usually it is an invoice of over £50,000, so a large one, to a spot factoring company.
    This will be after they have agreed rates and fees with the third party.
  • After the spot finance company has agreed they will then advance a percentage of the invoice to the company, often this will be between 70-90% and is often paid within 48 hours of the verification of the invoice.
  • Upon the end customer paying their invoice, the debt will be collected by the factoring company, which is turn will make the remaining funds available to their client, this will be minus the arranged fees and rates.

What are the advantages of Spot Factoring?

Spot factoring companies can release the funds that are tied into and individual invoice which is yet to be paid by the customer, the business will receive a percentage of the invoice from the factoring company before the client even pays the invoice.

If the invoice is particularly large, this will mean a large injection of cash into the business improving the businesses cash flow.

This will in turn enable businesses to keep themselves solvent, paying off their own suppliers at the right time, funding new projects or areas of growth for the business, paying wages or salaries, or buying new products or setting up new offices or venues.

Are there any disadvantages to Spot Factoring?

For the flexibility that spot factoring can provide a company, spot factoring companies will often charge high rates and fees. This can be reduced if the company is looking after the collection of the company’s whole ledger.

Sometimes it can take more than one week to become set up properly with the spot factoring company. This means that if your business needs the money before that, you may find it difficult. It is best to keep an eye on these invoices and your company finances so you can plan when and if you will enable a spot factoring company to provide their services for you.

Many businesses build close, friendly relationships with their customers. They may feel that if they enable a spot factoring company to collect on the invoice it may damage that relationship as the spot factoring company will insist on collection the payment themselves.

Our professional factoring teams are friendly and have your relationship with your customers in mind when collecting these payments for you, if you would like more information on what they can do for you and rates, please feel free to contact them.

What spot factoring solutions can you help with?

At Payroll Heaven, you can get an advance on any invoices to customers that are outstanding. We offer this service on both whole ledger, or a selective basis.

We make it easy for your business to access the funds that are tied into unpaid invoices, allowing your company to unlock that money and improve it's cash flow so that it can invest it into your business.

With payroll heaven you will receive:

  • A quick answer as to whether we will manage your invoice, and quick funds into your account as well as a speedy setup
  • An easy, no hassle set up experience.
  • No extra or hidden fees, which you may find with other companies.

Our friendly experts are on hand to provide support for you and your company.

If you enable us, we will give you an advance on your invoice once it has been verified.

We will pay you an advance of the invoice, usually between 70-90% before your client has even paid the invoice, making it easy for you to get funds and invest them into growing your business.

Once the invoice is collected, we will then give you the rest of the balance minus our fees and rates.

Contact our professional, friendly team to see what support they can provide.

Frequently Asked Questions About Invoice Factoring

How does invoice factoring work?

A factoring company will buy the accounts receivable from a client, normally at a discount.

These will be the accounts of slow paying clients.

This will provide quick cash for a company which can be used to continue to run their business.

The factoring company that has bought the accounts receivable will then collect the invoice payments from the clients of the company.

What does forensic accounting involve?
To register with the Construction Industry Scheme, you need to contact the CIS helpline on 0300 200 3210.
You will need you Unique Tax Reference Number (UTR) and have already registered as self-employed.
What legal disputes do forensic accountants deal with?
Everything gets put through electronically so you can get your refund as quickly as possible.
Even though we do this, HMRC can refund the payments and different times.
We have a system that will provide oversight for CIS refund and will chase up HMRC to make sure that they pay you back.
In our experience you will receive you CIS refund no earlier than 7 days and no later than 6 weeks.
Difference between auditing and forensic accounting?
We do not take a percentage of your CIS refund. We prefer to operate on a flat fee of £19.50 a month as opposed to a percentage.
This fee covers all of the work we do for you and also our representation of you in the event of an inquiry.
When should I contact a forensic accountant?
There are many things that you can claim your money back for, these are wide and varied. Most costs incurred whilst doing your work are re-claimable on your taxes.
Many expenses that can be claimed are not often thought of, but we are here to help. We work hard to make sure you get the full refund you deserve.
What should I do if I suspect financial fraud in my company?
We often have sub-contractors come to us with this issue.
As professional accountants we have other ways in which we can calculate your income and expenses. We will use these to make sure you get your full refund from the CIS taxes you have paid.
Your individual accountant can then work with you to help the record keeping, making sure it doesn’t present you problems in future.
Who do Forensic Accountants work with?
You can contact us, and we’ll do it for you.
When you have paid CIS deductions these should be claimed through your company or business payroll scheme. Do not try to make a claim against your Corporation Tax return because it is likely you will receive a fine.
Monthly Full Payment Submissions (FPS) get sent to HMRC as usual. An Employer Payment Summary (EPS) should also be sent to your employer.
How can I detect fraudulent activity?
Most ‘labour only’ sub-contractors will have tax deducted at a flat rate of 20%.
This can only happen if HMRC know your UTR on the list of CIS subcontractors.
However, this can rise to 30% as a penalty for not doing your CIS returns on time or correctly.
What is a Fraud Risk Assessment?
This all depends on whether you are already employed.
First you must register as self-employed, if this has already been done then your CIS registration can be done as quickly as in a few days.
However, if you are not yet registered to be self-employed registration with CIS can take up to 6 weeks.
Can a Forensic Accountant assist with court proceedings?
Contractors must deduct money from their subcontractor’s payments to pay HMRC under the Construction Industry Scheme (CIS).
These CIS deductions are advance payments towards the subcontractors National Insurance and tax. This is to ensure that sub-contractors are up to date with their taxes.
However often the subcontractors will have overpaid their taxes for the year and we can help to get a rebate for them.
Should I register for CIS?
If you are a contractor, you must be registered for CIS before you take on your first sub-contractor.
Sometimes they should not be a subcontractor but an employee instead and you must also check this, if they are a subcontractor instead of an employee then you will most likely incur a fine. You must also check that your subcontractors are registered for CIS with HMRC.
If you are a subcontractor you must register for CIS before you begin work or you will incur a penalty, and your tax rate will rise. Usual from 20% to 30%.
What is the difference between PAYE and CIS?
For subcontractors, under the construction industry scheme you will pay a fixed amount of 20% which will cover you National Insurance and income tax.
Many subcontractors are then entitled to a refund under this scheme as it does not consider your expenses.
Under the Pay as You Earn (PAYE) Scheme, as an employee, then you pay the ‘correct’ amount of tax. Any refund will be given through your wages.