Could Invoice Finance Help Your Business? Jul 11th
Invoice finance is a tool used my many businesses to help get access to funding immediately. It involves selling customer invoices to a factor in order to release their value immediately, bypassing the lengthy waiting time of between 30-120 days which it usually takes for a customer to pay. Here are some of the advantages of invoice finance.
Cash Flow
Normally offered through online companies like marketinvoice, invoice finance allows you to receive a large percentage of an invoice’s value upfront, minus the fess of the factor. This means that your business gets an instant cash injection (within 24 hours), which can be used for funding business operations.
This is particularly useful to businesses with cash flow problems, which can be caused by the lengthy delay in invoice payments. Having healthy cash flow can make the difference between success and failure in business, so invoice finance can offer a useful means of keeping money coming into the business, especially for SMEs.
Resources
Managing and tracking invoices can also take up a significant amount of time and resources, which can seem frustrating when they could be better used elsewhere in the business. Another advantage of invoice finance is that it frees up time and resources, which can then be used for more important matters.
It is worth noting that invoice discounting is slightly different, as although you receive money for the invoice, you still have to track and manage the invoice on behalf of the factor. If using this method, a simple credit check of your customers should determine whether they are likely to pay on time or not.
Business Growth
One final benefit of using invoice finance is the overall acceleration of growth which it stimulates. Having access to a significant lump sum of capital can work wonders for a business owner who uses it wisely. Reinvesting back in your business is usually a sure-fire way of promoting growth and taking it forward.
You could take on bigger jobs and purchase new equipment, or hire new staff. The options are limitless, but you can certainly do a lot more with your business if you have the necessary funding.
Invoice finance can greatly help businesses which would benefit from speedier invoice payments. Although you lose a small percentage of profit, you gain a significant amount of time and funding which can provide the means to advance your business extremely quickly, and make your operations more efficient.
Jul 11th
Invoice finance is a tool used my many businesses to help get access to funding immediately. It involves selling customer invoices to a factor in order to release their value immediately, bypassing the lengthy waiting time of between 30-120 days which it usually takes for a customer to pay. Here are some of the advantages of invoice finance.
Cash Flow
Normally offered through online companies like marketinvoice, invoice finance allows you to receive a large percentage of an invoice’s value upfront, minus the fess of the factor. This means that your business gets an instant cash injection (within 24 hours), which can be used for funding business operations.
This is particularly useful to businesses with cash flow problems, which can be caused by the lengthy delay in invoice payments. Having healthy cash flow can make the difference between success and failure in business, so invoice finance can offer a useful means of keeping money coming into the business, especially for SMEs.
Resources
Managing and tracking invoices can also take up a significant amount of time and resources, which can seem frustrating when they could be better used elsewhere in the business. Another advantage of invoice finance is that it frees up time and resources, which can then be used for more important matters.
It is worth noting that invoice discounting is slightly different, as although you receive money for the invoice, you still have to track and manage the invoice on behalf of the factor. If using this method, a simple credit check of your customers should determine whether they are likely to pay on time or not.
Business Growth
One final benefit of using invoice finance is the overall acceleration of growth which it stimulates. Having access to a significant lump sum of capital can work wonders for a business owner who uses it wisely. Reinvesting back in your business is usually a sure-fire way of promoting growth and taking it forward.
You could take on bigger jobs and purchase new equipment, or hire new staff. The options are limitless, but you can certainly do a lot more with your business if you have the necessary funding.
Invoice finance can greatly help businesses which would benefit from speedier invoice payments. Although you lose a small percentage of profit, you gain a significant amount of time and funding which can provide the means to advance your business extremely quickly, and make your operations more efficient.
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