Why Invoice Finance Can Help You

The practice of invoice finance is attracting more attention than ever before. It has helped thousands of struggling businesses around the world. The issue of cash flow is a sore point with many established corporations finding their progress hindered by cash flow issues. In some cases, businesses foolishly offer better credit terms to clients and can be waiting up to 60 days for payment. This is not a sustainable practice for any organisation.

Cash Flow Momentum

If a business is selling goods but not receiving cash for 30-60 days, how is it supposed to bring in new stock? What happens to most companies is that they are forced to wait for payment before proceeding with their own plans. As a result, all positive momentum is lost as the business is effectively at the whim of its clients. If a customer is late with payment, things can get even more difficult.

Reliance

Invoice finance can ensure a healthy cashflow for a business. Instead of being reliant on the swift payment of a customer, you will receive up to 95% of the value of your invoice with the rest paid when the client pays what is owed in full. You have the option of allowing the provider to take charge of collecting the debt (invoice factoring) or else you can do it yourself and prevent clients from finding out that you have an agency working for you (invoice discounting). Either way, you now have a professional organisation on your side that provides you with immediate cash.

Sustainable Business

It is obvious how this helps your business. Instead of eking out an existence while waiting for payment, you will instantly have a large proportion of the cash you are owed. You can now start planning for the future and establish a level of momentum that is crucial in order for your business to be a success. If you have competitors who are not taking advantage of invoice finance, you also have a major advantage due to a superior cash flow situation. It is also possible to benefit from discounts by purchasing goods for your business in bulk, something which is almost impossible with the old method of invoice collection. As you sell more goods, the cycle repeats itself and your cash flow becomes more and more sustainable. Eventually, you will be able to relieve yourself of the services of an invoice finance company.

If you are currently running a company which is having difficulty growing due to a lack of ready cash, invoice finance could be the ideal solution for you. Stop relying on your clients and accept the opportunity to expand. All it will cost you is a relatively small fraction of the invoice.

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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