1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200 
, have heard of "factorising one's debts" but can you explain how this works?
Page 124
If you've noticed an error in this article please click here to report it so we can fix it.
ATo factor one's debts means that you hand over your debts to one of the organisations specialising in this service. The organisation pays you, say, 70 per cent of the outstanding debts immediately and, providing the customer pays up on time, they pay to you the outstanding 30 per cent less their finance and service charge. This could work out in the region of 6 or 7 per cent.
Each customer is assessed for credit rating but if one of them exceeds the credit rating then the factorising organisation will exclude this account from its initial payment. It is then up to you to approach the customer to settle up. Normally, you will receive a statement every week from the factorising company showing what has been paid during the past week and this enables you to keep an eye on the amount of business being done with each customer and the regularity of the payment. A monthly statement is also sent so that you can see how payments are lagging.