Factoring Without a Concentration Limit
Many factoring companies impose a concentration limit on their facilities. The good news is that we can provide invoice finance facilities with no concentration limit.
A concentration limit is the amount of debt allowed with any one customer. For example, if you have just one customer then all your invoices will be with that one customer. In this instance you require a 100% concentration limit. If you have 2 customers with equal balances then your concentration is 50%. If for example an invoice finance company provided a facility with a 30% concentration limit then your funding will be restricted.
So what do we need to set up an invoice factoring facility without a concentration limit?
In the first instance we will need to understand that your only customer is credit worthy. If you are supplying a large business with a good credit rating then there is a really good chance that we can help.
What are the other criteria?
You need to be raising invoices to the credit worthy customer on credit terms and in arrears of your product or service being supplied. This is fairly standard and if you are doing this there is a good chance we can help you.