How does factoring work?
Agreed limits are set for the amounts that can be prepaid to you.
An invoice is then raised and sent to the customer with copy for the Provider. The invoice will make it clear that the Provider is involved in the transaction.
The Provider pays the agreed percentage (Say 80%) to you within 24 hours.
The Provider will follow up payments on your behalf.
Payment will be received from the customer via the Provider and is paid into a bank trust account.
The Provider will then pay you the balance (say 20%), less charges
Any of your money that the Provider receives is paid into a Bank Trust Account
