SAVE MONEY

Factoring really is a cost-efficient method of funding of your business. For example here are just some of the costs that you can save.

George Smith was thinking of factoring for his company, but was concerned at the cost of the service charge. He sat down and did a comparison table

On turnover of £1m the service charge would be	£5000
But he calculated that he would save:
Banking (cheque deposits, returned cheques etc)	£1160
Statements (Printing and post)	£720
Debt Chasing (letters, collection costs)	£1610
Staff time (ledger, banking, collection - 2 days week)	£6000
Management time	£4000
Information costs	£1000
Interest saving (days outstanding reduced by 10 on £200k balance)	£666
Cash discounts from suppliers (£27k extra available)	£1350
Total	£16506
SAVING	£11506

How much would you save?

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