If you’re running a small or medium sized business and aren’t sure whether Invoice finance could help your company, here’s a few of the benefits explained.
– Flexibility ? You only pay interest on the money you borrow. Compared to a bank overdraft or asset finance, the rates of lending can be surprisingly competitive.
– Saves you time and resources ? By allowing an Invoice finance company to chase up your customer invoices on your behalf, you can free up precious time and resources to develop your business.
– Improve your cash flow. Most reputable invoice finance companies can provide you with 90% of the sales value of your invoices within 24-72 hours. This means you’re not left waiting around for individual invoices to trickle in, leaving you with the funds you need, when you need them.
– Cut down administration overheads. By simplifying your finances, Invoice finance allows you to cut back on your financial administration overheads, allowing you to channel your resources into other areas of your business.
– See your business grow and develop ? Research by the ABFA shows that companies who take advantage of Invoice finance tend to grow at a faster rate than companies that don’t. A good Invoice finance company will be able to release more funds to you as your business grows, without having to renegotiate the terms of your contract.
Whatever the size of your business, learning about how Invoice finance works is really worth the effort. Look out for reputable, fully accredited companies who might be willing to talk you through the potential advantages to your company.