In today’s fiercely competitive environment, access to working capital plays a pivotal role in driving growth. Invoice finance has evolved to become the lending option of choice for growing businesses. It’s incredibly cost effective and flexible enabling businesses seeking immediate access to funds to expand and manage their operations.
Invoice finance works by enabling businesses to sell their invoices to a third party, typically an invoice finance provider, at a discounted rate. The provider lends up to 90% of the invoice immediately, and then, depending on the type of service used, collects the full invoice amount from the customer. This seamless process empowers businesses to access the necessary funds to pay bills, invest in new projects, and manage day-to-day expenses. Growth doesn’t come cheap, and it puts a strain on cashflow – even for successful companies.
What benefits does invoice finance offer?
Improved cash flow:
Invoice finance swiftly enhances cash flow, particularly for businesses who do not have the time or in-house skills to manage credit control.
Increased working capital:
By unlocking additional working capital, invoice finance empowers businesses to invest in growth initiatives, support new projects, and manage their ongoing expenses effectively.
Reduced risk:
Invoice finance mitigates the risk of bad debts by transferring the responsibility of collecting payments from customers to the finance provider, who purchases the invoices at a discounted price.
Enhanced credit rating:
Invoice finance has the potential to bolster a business’s credit rating. It showcases effective financial management and demonstrates access to alternative funding sources.
If you’re a business owner, consider invoice finance as a viable option. It provides a flexible and affordable pathway to funding, resulting in a positive impact on your business’s bottom line.
Reach out today to explore how invoice finance can fuel the growth of your business.
