Benefits of Invoice Finance

Why might you decide it’s best to enter into an Invoice Finance arrangement? Here are 5 great reasons for choosing to use Invoice Finance.

1. Get immediate access to cash without needing a loan

While traditional loans are debt that usually has to be carried on the balance sheet and serviced with monthly interest charges. Invoice financing works differently as it speeds up a business’s access to the money that it’s owed from its debtors. This type of finance does not require long-term committed contracts.

2. You can apply for Invoice Finance in hours

Compared to other types of business loans, invoice financing has a very quick turnaround. You could avoid having to ever wait again for the payment period by submitting your business invoices for invoice financing.

3. Feel better about big projects

Businesses carry a lot of cost for big jobs and payment is often slow when there’s a big corporate involved as the debtor. That’s a bad combo. Invoice financing allows businesses to take on larger and more lucrative contracts without getting stretched too thin as they can get immediate access to the cash from the invoice they issue to the big corporate on completion of the job, instead of waiting the normal 30 to 60+ days for payment.

4. Business growth

To grow, businesses need a steady cash flow. There are various reasons why factoring is good for business growth. To start with, it enables a business owner to focus on acquiring new customers rather than chasing debtors. Secondly, it allows a business to extend credit lines to its loyal customers who require credit facilities. Thirdly, it makes it possible for a business to pay its suppliers, and consequently avoid supply chain constraints. Fourthly, a business owner can focus on marketing his/her business rather than fending off creditors. These aspects can help you grow your business while competitors who are facing funding problems flounder.

5. Reduce the risk of late payments and bad debts

Late payments from customers and bad debts can cripple a business. Of course, you can take legal action against debtors who fail to pay their debts on time or are unwilling to pay, but this approach can be costly and lengthy because you have to hire and retain a lawyer to represent your company. To avoid such a scenario, invoice discounting helps to eliminate this risk. The invoice finance company does their credit check on your debtor, independently and often takes out insurance against non-payment. Such companies have professionals who know how to deal with customers who are likely to make their payments late or fail to pay completely and how to recover the funds.

Essentially invoice financing allows a business to get paid immediately for the products provided and invoiced so that the cash can be put back in the business to purchase more inputs to sell more products quicker, hence increasing turnover and profits.

Does this sound ideal for your business? If you’d like to know more about how to get started with Invoice Financing, get in touch with me today on 01908 92 62 62 or at