Our solicitors are vastly experienced in assisting companies of all sizes to facilitate and advise upon the negotiations involved in agreeing the terms of Invoice Factoring. At Blackstone Solicitors, we are able to advise many different types of client on the process involved, no matter the complexity of the circumstances being considered and the proposed terms of the agreement.
For more information about how our team of corporate solicitors can help, contact us on 0345 901 0445 or complete our online enquiry form and a member of the team will call you back at a convenient time.
Invoice finance is where a business supplier of goods or services assigns the debt due to it from its customers to a finance company in return for an immediate upfront payment of up to about 80% of the value of the debts assigned and the balance, less charges, being payable when the customers pay.
Factoring or invoice discounting are types of invoice finance.
Blackstone Solicitors are known for our efficiency, attention to detail and ability to get things done; qualities much needed when negotiating an invoice factoring agreement. We will provide professional, pragmatic advice based on our years of experience in this specialist area.
Our team will do all that is necessary to ensure you are properly and robustly represented in any negotiation and will put your interests first at all times. Negotiating the terms of an invoice factoring agreement can be highly technical and we will ensure you are in the best possible position for a successful outcome.
Why Legal Help is Important
It should be remembered that entering into an invoice factoring agreement can take place in companies of any size and in any industry.
The process can be complex, potentially stressful and can be considered to be
incredibly important. It can have an impact on you and your business, both in the short and long term – it is therefore imperative that you have the best legal experts at your side, not only to ensure everything progresses as it should, but also to make sure both you and your business benefits from the best possible terms of any agreement.
The main reason a business will consider invoice factoring is to improve its cashflow.
Upon payment of a fee, the supplier can obtain credit control and bad debt protection.
By factoring its debts a business can obtain payment of the majority of the debts owed to it without having to wait for payment. This can often take a number of months, a time frame most businesses can ill afford.
Although there are a number of different types of agreements, the two most commonly used are disclosed factoring agreements and confidential undisclosed agreements.
In a disclosed factoring agreement the customers of the business are told about the assignment of the debt.
In a confidential undisclosed agreement, the customers of the business are not told about the assignment.
Where there is a disclosed factoring agreement, the customers are told by means of notice of assignment on the invoices and on the monthly statements of account which notify the customers that the debt has been assigned to the finance company to whom payment should be made.
Depending upon the structure of the company factoring its debts, the lender will look for security in a number of ways. In a limited company, this can include obtaining a deed of waiver and priority from any third party who has registered a charge, by taking a deed of guarantee from a director or shareholder or by taking a charge over a property asset.
If the business factoring its debts is either a sole trader or a partnership, and it enters into a whole turnover factoring or invoice discounting agreement then the finance company may also register the agreement at The Bills of Sale Registry to avoid a possible challenge by a trustee in bankruptcy pursuant to section 344 of the Insolvency Act.
Whatever the circumstances are of the factoring agreement, we ensure full compliance with corporate laws and regulations, so that you can be sure that the process is addressed on a firm financial and legal basis.
We will work with you to ensure all financial, tax and legal aspects of any proposed agreement is properly managed. We are able to assist with any aspect of this and will guide you through the technicalities in a clear and concise way. We have a team of experienced solicitors well versed in the process who are ready to assist you.
Get in Touch
Find out more about our services and how our corporate solicitors can assist you and your business by getting in touch. We have offices in Cheshire and London and are able to serve clients across the North West, including Chester and Manchester, as well as throughout the UK and also overseas.