Contractor Finance Cash-flow specialists, the only provider of invoice and timesheet factoring that is offered solely to freelance professionals.
Business Finance for Freelance Contractors
We are always on the look-out for new products and services on the market that solve problems uniquely faced by the freelance community. We have now teamed up with cash-flow specialists Contractor Finance, the only provider of invoice and timesheet factoring that is offered solely to freelance professionals.
What is Contractor Finance?
Contractor Finance is factoring, with one or two differences that we think you’ll like.
Traditional factoring is a way in which businesses improve their cash-flow by accessing cash tied up in their invoices, thereby enabling them to pay suppliers on time even if clients haven’t paid them. Contractor Finance goes one step further than that – it gives you access to the cash tied up in your timesheets.
Despite the horror stories surrounding the costs of this type of finance, in reality you’re likely to be looking at less than 2.4% per invoice to gain access to the full service, and 40 times your day rate!
What would I need Contractor Finance for?
- Short term cash-flow requirement? Get access to your cash, at rates that are comparable or less than borrowing from a bank.
- Making the transition from Umbrella or PAYE to Limited Company? You could be waiting up to nine weeks to receive payment for your first invoice. Contractor Finance gives you cash with every approved timesheet.
- Need a lump sum of cash before your outstanding invoices get paid? As well as regular cash released from timesheets and invoices, you can sometimes release a one off lump sum from your last couple of month’s invoices.
How it works
You simply email your approved timesheet every week and receive 80% of its value into your business bank account Once the invoice is paid the balancing 20% (minus fees) is sent to your account.
As well as having access to cash, Contractor Finance issue invoices on your behalf, manage the collection of cash, and provide you with an essential credit check of prospective agents and clients.
Even if you only usually take one day per month out to do this, multiply your day rate by 12 and that’s how much more you could earn by having somebody else do the leg-work for you!
Do I qualify for Contractor Finance?
If you are, or are thinking of becoming, a limited company contractor, with a Contract for Services operating on a time sheet or invoice basis, then YES!