Confidential Factoring is offered by only a few factoring companies. We can help you to secure this type of facility. This is a full factoring service, with the credit control being operated by a credit controller employed by the factor in their premises.
Sales ledger management is undertaken in your name, with customers being totally unaware of any third party involvement. All correspondence is generated on your stationery, ensuring full confidentiality. Incoming credit control calls are routed via a bespoke telephone system to ensure that client confidentiality is not breached.
The factor will provide you with your own unique trust account which enables your customers to make payments. The trust account is checked daily and the sales ledger is kept up-to-date. In some ways this is better than a traditional facility which would often involve using a general suspense account (which can lead to allocation issues).
Funds are advanced against sales invoices in the same manner as a standard factoring facility (usually up to 85% of the invoice value), with the remainder available when the customer pays.
For businesses who are concerned about any “stigma” attached to traditional factoring this is an ideal solution. It can also be beneficial as a “stepping stone” towards Confidential Invoice Discounting based on future financial performance in a turnaround situation.
It is usual to pay a slight premium for this service compared to a disclosed factoring facility.