Why Invoice Factoring is a Smart Start for Bodyshops in 2025

A new year brings many challenges when it comes to the smooth operation of a bodyshop. One of the biggest is management of cash flow from the end of one year into the next as the festive period can quite often bring abit of turbulence when it comes to getting finances in order. Moving into a new year requires getting ahead of the game, thinking of more flexible and smart ways to manage cash flow within your business. This is where Invoice factoring can help.

What are some common cash flow issues?

Cash flow issues don’t come as a surprise to bodyshops, often stemming from several factors. The most frequent issue is delays in payment from insurance companies, once repairs are complete, a long waiting period can often follow leaving bodyshop owners chasing up invoices. Additionally, seasonal fluctuations in business can also impact cash flow, making it harder to maintain a steady income throughout the year.

The winter season, extending from the end of the year into January, can also significantly affect bodyshops, bringing financial challenges that many owners may not expect. You can read more about how to overcome such challenges by visiting our website.

What does invoice factoring involve?

Invoice factoring is a financial solution in which a bodyshop sells its outstanding invoices to a third-party provider, like ACG. After completing repairs and issuing an invoice, the bodyshop can factor the invoice to receive immediate cash. This enables the bodyshop to access funds quickly, instead of waiting for payments from networks or insurance companies, which can take up to 90 days.

Simply put, you receive payment right away, and ACG handles collecting payment from your clients later.

What are the benefits of invoice factoring in 2025?

As we enter 2025, within a constantly evolving industry it is more important than ever to be prepared. With fluctuating consumer demand and rising operational costs across the industry, bodyshop owners need a way to manage finances efficiently. Invoice factoring can be the solution you need to get ahead of your competition, here’s how:

• No waiting around for cash: Following the festive season, bodyshops can face cash flow gaps due to slow or delayed payments from insurance companies as the year draws to a close. Invoice factoring provides bodyshops with immediate cash meaning the worry of carrying financial worries into the new year is eliminated.
• Opportunity for growth: A new year brings new opportunities and goals for your bodyshop; invoice factoring provides flexibility to invest your money however you wish, meaning it is easier than ever to plan for your future. Whether this means purchasing new equipment, hiring new employees or putting funds aside for new projects.
• No incurred debts: Invoice factoring is not a loan, so bodyshops will not incur any debts, therefore nothing is added to your balance sheet and credit rating is not affected. Meaning you can start the year with a clean sheet, funds available and no financial burdens.

Case study.

As previously mentioned, cash flow can be a challenging task, particularly as each year brings new changes. By adopting invoice factoring to help with tackling cash flow issues, body shops can secure long-term success for their business from the start of the year and throughout. ACG collaborates with numerous body shops that are familiar with these challenges.

Chris Haddow, Director at Glasgow Bodyshop shared his experience of working with ACG and how invoice factoring has helped him manage cash flow in his business, always keeping him ahead of the curve.

“From a cash flow perspective, the next day payments are a game changer. Having the money in the bank means we’re one step ahead. ACG is always on it, they make sure the payment packs are spot on, meaning that everything is processed in time, making life so much easier for us.”

In 2025, financial stability is the key to your success and invoice factoring could be the perfect tool to ensure your bodyshop sets the pace. Whether you’re dealing with cash flow fluctuations, or looking to expand your business, factoring can provide the financial relief you need to keep things running smoothly throughout the year.

If you’re ready to upgrade your cash flow and set your bodyshop up for success in the new year, speak to the experts at ACG.