A common misconception is that invoice finance solutions are only used by businesses that are struggling. This couldn’t be further from the truth. Many businesses decide to have an invoice finance agreement in place because it ensures the cash due from their invoices is received in a timely manner, easing out peaks and troughs in predicting income, and taking away the pressure of all the time-consuming credit control functions, freeing up their valuable time.
Knowing that the cash is available to them without having to wait for their customers to pay gives many businesses the reassurance they need to be able to confidentially expand and grow as and when they need to, without having to worry if they have the working capital available.
If you’re looking for a way to grow your business and improve your business’s cash flow, then invoice finance could be the solution for you; let’s explore it further.
What Is Invoice Finance?
Invoice finance is a way of funding your business by releasing cash that is tied up in unpaid invoices, providing a real boost to your cash flow.
How does it work?
You sell your outstanding invoices to an invoice finance company. The invoice finance company provides access to an agreed percentage of the invoice value which you can draw up to. In addition, any funds utilised in advance of the invoices being settled incur a discount fee which works in the same way as bank overdraft interest would. You can then use this money to fund your business activities and growth.
Invoice Finance for Business Growth.
Growth is the dream of many small business owners. However, the decision to grow your business is big and a challenge to manage. Cash flow is a top priority, and many things can go wrong when you start expanding if you don’t have the cash flow stability you need.
The implications of growth, of course, include the fact that as you increase sales, overheads such as headcount, stock purchase, materials, etc. go up as well. This can lead to cash flow issues if not managed properly from the start. The first step in preparing for growth is ensuring you have a healthy cash flow, a flexible line of credit and expertly managed credit control.
Invoice finance is a key tool for fuelling business growth. By having a viable invoice finance solution in place taking care of the financial side of things, businesses can focus on what they do best and look to:
- Invest in marketing and business development activities to help attract new customers and grow the business.
- Hire new staff to support the growth of the business.
- Purchase new equipment or upgrade premises to improve efficiency and capacity.
- Take on larger contracts to increase turnover and profits.
- Be able to take advantage of opportunities as they arise instead of waiting for cash to drop.
The Benefits of Invoice Finance for Small Businesses.
There are a number of benefits that come with using invoice finance. For example, it will free up your working capital, as well as give you access to a team of experts who can manage your credit control and collections. In turn, this will improve your business’s cash flow and give you peace of mind over finances and enable you to expand your business.
With the extra cash flow generated from having an invoice finance agreement in place, businesses can focus on growth rather than just survival. This is because they no longer have to worry about whether they will be able to pay their bills on time – they know the money is there and available to them when they need it.
An invoice finance facility grows with you; it’s a way to manage your cash flow, and reduce time pressures, admin, and the stress of collecting payments yourself. It’s like having a hidden financial department and safety net. As you grow your business, it keeps pace with your needs and supports growth.
Using an Accredited and Client-focused Lender.
There are many benefits to using an accredited and client-focused lender for your invoice finance needs. Perhaps the most obvious benefit is that you can be sure you are collaborating with a company that is reputable and has your best interests at heart.
When it comes to something as important as your business finances, you need to be able to trust your lender. With an accredited and client-focused lender, you can be confident that you are working with a company that has a proven track record of success.
Another benefit of using an accredited and client-focused lender is that they will have a wealth of experience in the industry. This means they will be able to provide you with the best possible support when it comes to invoice finance.
Growth Never Sleeps, Make Sure your Cash Flow Keeps Up.
Growth is good… very good. But when it happens fast, or unexpectedly, it can put a real strain on your cash flow, which can literally bring your business to a standstill. Invoice finance provides dynamic financing when you need it (not when you don’t).
At Partnership Invoice Finance we want to help businesses grow, which is why we offer invoice finance to start-ups, SME’s, and those requiring funding up to and in the region of £1,000,000. If you are looking for a reputable, trustworthy, and experienced lender for your invoice finance needs, then look no further. We are a client-focused lender with a wealth of experience in the industry but don’t just take our word for it.
“As a small business eager to grow, we were keen to find a factoring company that could demonstrate a genuine interest in our success and willingness to provide us with a more personable service. From our first point of contact with Partnership Invoice Finance, we have been treated as a valued ‘partner’ and have confidence that our business requirements are always taken seriously and dealt with both efficiently and professionally.”
CH – Director
“Partnership Finance have been an integral component in enabling us to grow our business tenfold over the past 5 years. With their friendly and personable approach, they are more like an extension of our company with our customers, and this has given us the confidence to be reassured that our debtors ledger is in safe hands – whilst we focus on the core elements of our business.”
SL- Managing Director
If you’re a business owner who is looking for ways to free up time and focus on growth, then invoice finance could be the solution you’ve been searching for. Contact us today to find out more about our invoice finance options.