Invoice Finance for Logistics Companies

Advantages of Using an Invoice Finance Facility for Your Logistics Business

When your logistics business is growing, it’s important to have the cash flow to support that growth. An invoice finance facility can provide the increased capital you need to expand your business and take on more staff, delivery routes, and customers. Invoice finance can also help you manage cash flow during times of peak demand, such as the holiday season.

In today’s climate couriers and hauliers are busier more than ever and therefore the need to maintain a healthy cash flow is essential to ensure that operations continue to run smoothly and that your business is also able to grow as and when required.

Operational growing pains made even harder!

Growing pains for businesses in the logistics sector are made even harder when you have significant cash flow issues. This could be caused by increased business demand, the need to employ (and find) additional staff, purchase more equipment or, the daily struggle with credit control, constantly chasing unpaid client invoices. There are many problems that can contribute to operational pains and none of them will be resolved if you don’t have the capital available when you need it. The answer to your cash flow shortfall is quite simple – invoice finance.

What is invoice finance?

Invoice finance companies, and particularly members of UK Finance are accredited reputable companies’ who offer their clients a viable funding alternative offering security, stability, flexibility, and access to cash when they need it.

If you need a flexible line of credit to help manage cash flow, then invoice finance is an important consideration for your business. Invoice finance will help make sure that your cash flow is managed and at Partnership Invoice Finance this is specifically aimed at small and medium-sized businesses.

Factoring is an alternative form of finance that allows your company to access cash sooner than waiting for payment from customers. It’s a facility that grows with you; a way to manage your cash flow, reducing the time pressures, and the stress of collecting payments yourself. It’s like having an additional financial department and safety net. As you grow your business, it keeps pace with your needs and will help support growth.

  1. Factoring provides access to cash without the business having to sell inventory or other assets to pay urgent bills at a time or price that may not be right.
  2. Factoring is a far more flexible option than traditional borrowing – providing finance that grows as you do.
  3. You don’t have to provide personal collateral for factoring, which is often required when you take out loans from banks and other financial institutions.
  4. Application process and sanction for factoring with Partnership is quicker than the Bank – usually, a facility is agreed within 48 hours with the first drawdown of cash to you shortly after.
  5. Factoring is an efficient and flexible way of borrowing money.

Factoring gives you access to the value of invoices before they are paid – typically within 48 hours of raising them and whilst most businesses have their whole turnover funded, you choose which customers you want to factor. The financier then provides the funding and manages every aspect of your credit control saving you time and money.

Let us help you!

Invoice finance is a recognised tool that small-medium businesses use to manage their cash flow, grow their business, and outsource their credit control. Choosing to use the services of an invoice financing company, gives you the flexibility to release cash from your invoices straight away; use the professional outsourced credit control or indeed a combination of the two.

Entering into an invoice finance agreement is a fantastic way to get access to your money without giving up any equity or personal assets and allows for long term growth rather than short-term gain. Appointing an accredited lender to manage your invoice finance is a big decision – one that you need to get right.

Contact us today so, we can discuss your options.