Loan against future commissions

Graeme7777

Hi,

Is it possible for a business that makes its money from commissions earned to borrow against the commissions earned but not yet received (there is a long time lag between the money being earned and received) to smooth the cash flow of the business?

If so, does one need to approach a specialised lender or will a high street bank typically also be able to help?

Would this be an example of "factoring"?

Thanks

jonesMUFCforever

I would think that factoring is the way forward for you provided you are an established business with decent sets of accounts to back up your figures.

theartfullodger

"Long time lag" seems fertile ground for fraud/the company that owes you money going bust & the Directors running off with the loot:

Probably just me being suspicious & cynical.

Cheers & best wishes,


Lodger