Annual turnover of at least £50,000, but some factors will consider start-ups and smaller businesses.
What makes a business suitable for factoring?
Factors' requirements vary, so what follows is an indication and not a rigid list. You may find a factor even if the following criteria are not met.
What makes a business suitable for factoring
It is best if there are more than just a few customers.
No single customer accounts for more than about a third of turnover.
Customers accept the standard payment terms for the industry.
Customers accept a reasonable period of credit.
What makes a business unsuitable for factoring
The business sells to the public. Factoring is only available for sales to commercial customers.
Too many small invoices.
Too many disputes and queries.
The business is not sound, reputable and trustworthy.
Customers make part payments or stage payments.