What types of businesses can use factoring?
• No company is excluded, even those making trading losses or which have a negative net worth. This is because the factoring company’s prime security is your customers through your invoices to them (as well as yourself). As a result factoring is available to Sole Traders, Partnerships, Limited Companies, PLC’s, New Start-ups plus business in an IVA or CVA and companies arranging a phoenix. VAT and NIC arrears are not usually a problem either.
