Thursday 30th May 2019—
updated 10.31am, Thursday 13th May 2021
The cuts of recent years mean that it has become increasingly difficult for pharmacy owners to find the cash to invest in their business. Could factoring be a solution?
Factoring is a financial transaction in which a business raises ready cash by selling its invoices to an agent, or factor, at a discount. This means that the business is paid immediately rather than possibly facing a long wait for payment or having to spend time chasing the invoices. The factor benefits by charging a fee for the service, or a percentage of the total invoice value – typically 1% to 2%. The process is also sometimes referred to as “invoice discounting” or “receivables finance”.
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