The Benefits of Invoice Finance

Invoice finance is an exciting new way for companies to get paid up to 95% of the value of their invoices almost immediately. Cash flow is a major problem for the majority of new companies and is also becoming an issue for established organisations as the recession places its hands in our collective pockets. Companies are finding that clients are taking advantage of 30-60 day credit terms and failing to pay, sometimes for up to 90 days. This is a problem for businesses that are often short of available cash. They have to wait for the invoices to be paid and this is extremely frustrating.

Another benefit of having cash available is that it allows you to grow your business. Whether it allows you to take on more jobs or diversify by offering other products, having cashflow available is always a positive.

Get Instant Cash

Thanks to invoice finance, this frustration is no longer as keenly felt. The most obvious benefit of invoice finance is that it immediately improves cash flow. A provider pays a business up to 95% of what their invoices are worth. The provider holds the remainder until the client settles their invoice. A service fee is charge as well as a discount charge. However, for a business which constantly faces cash flow issues, the freedom provided by invoice finance means that these fees are a small price to pay, especially when it allows companies to expand and earn more revenue. They soon find that their additional annual turnover exceeds what they pay for an invoice finance provider.

Business Expansion

With the additional cash comes a new opportunity to become a bigger player in any given industry. More cash means more options, especially in the field of bulk buying where large sums of money can be saved by making wholesale orders. It can be disheartening for an up and coming business to be hindered by lack of cash. They may have the potential clientele but with no produce to back them up, potential buyers look elsewhere as they are not prepared to wait. Invoice finance keeps a company at the cutting edge of their industry because money is no longer the sole factor in purchases.

We can offer you financial solutions to help keep your cashflow healthy. Request a quote now to find out how much invoice finance can save you.


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