The role of factoring in easing payment delays

Time Finance

Factoring is a form of business finance designed to help companies improve their cash flow by releasing the value tied up in unpaid invoices. Instead of waiting weeks or even months for customers to settle their bills, businesses can access much of the invoice value almost immediately, giving them the flexibility to cover day-to-day expenses, invest in new projects, or simply reduce financial pressure.

The process is straightforward. A business issues an invoice to a customer in the usual way, then passes that invoice to a finance provider such as Time Finance. The provider releases a significant percentage of the invoice value, often within 24 hours. Once the customer pays, the remaining balance is passed back to the business, minus an agreed service fee.

There are several approaches to factoring, each designed to suit different business needs. With traditional factoring, the finance provider manages both the advance of funds and the collection of payment from customers. This can ease the administrative burden while ensuring a steady flow of working capital. Invoice discounting, on the other hand, allows businesses to retain control of their customer relationships while still unlocking the cash value of invoices. Reverse factoring works in favour of suppliers, ensuring they receive payment quickly while the buyer maintains longer terms. Spot factoring offers a flexible option by providing funding against individual invoices when required.

Time Finance plc (LON:TIME) is an AIM-listed business specialising in the provision or arrangement of funding solutions to UK businesses seeking to access the finance they need to realise their growth plans. Time Finance can fund businesses or arrange funding with their trusted partners through Asset Finance, Invoice Finance, Business Loans, Vehicle Finance or Asset Based Lending.

Share on:
Find more news, interviews, share price & company profile here for:

    Ruffer Investment Company Annual Report 2025: Shock resistance and satisfactory returns

    Ruffer Investment Company (LON:RICA) released its Annual Financial Report for the year ended June 30, 2025. In this article quoting directly from the Chair’s statement in its Strategic Report, we’ve covered the key performance indicators, investment performance, fund managers, earnings and dividends and outlook.

    The Diverse Income Trust Gervais Williams Eyes Big Gains from Gold, Gas and Tech (Video)

    Gervais Williams reveals how The Diverse Income Trust is crushing major indices — powered by standout picks in gold, gas, and fintech.

    Big Technologies announces change of Chair

    Big Technologies plc (AIM: BIG) has confirmed that Alexander Brennan has stepped down as Independent Non-Executive Chair with immediate effect. Sangita Shah has been appointed Interim Chair as the company continues efforts to resolve ongoing litigation with former CEO Sara Murray.

    FW Thorpe delivers profit growth despite flat revenue in 2025 results

    FW Thorpe reported preliminary results for the year to 30 June 2025, with profit before tax up 5.9% to £31.6 million and earnings per share rising 4.6% to 21.69p.

    Manx Financial Group publishes Interim Results Presentation for H1 2025

    Manx Financial has released its presentation covering unaudited interim results for the six months to 30 June 2025. The update outlines financial performance, operational highlights, and strategic developments, including growth in profit before tax to £4.1 million and earnings per share rising to 3.11 pence

      Search

      Search