Many business owners will find themselves needing to borrow money at some point to grow or invest in new products/services and increase their chances of business success.
Invoice factoring is growing rapidly as a reliable and flexible form of business funding, with more businesses realising the benefits invoice finance brings.
We explain 5 reasons why successful businesses are choosing invoice factoring over other types of finance:
1) Boost Your Working Capital
When offering credit terms to customers, cash flow can become tight due to the need to pay suppliers and other business expenses before customers have paid.
This cash flow gap can become even wider if the business is growing quickly, therefore business owners need access to funding that gives them the flexibility to borrow money, as and when they need it.
Invoice Factoring offers the solution. Every time a business raises an invoice, up to 90% of the total is made available, so rather than waiting for the customer to pay – the business has access to cash straight away, providing enough working capital to cover any expenses when they fall due.
2) Flexible Funding
Unlike other forms of finance, invoice factoring grows with the business, so as the turnover increases, so does the borrowing amount. That means there is no need to waste time and money applying for limit increases as you grow, making invoice factoring a very flexible form of borrowing.
3) Save Time and Money
Invoice factoring solutions include a credit control function which fully manages the sales ledger, chasing payments from customers professionally and on time. The factoring company will also credit check customers advising on their risk and levels they are willing to fund up to.
This expert service is a huge benefit to save the business owner both time and money.
4) Protect the Business
With bad debts an increasing problem within the SME sector and customers taking longer to pay; cash flow ultimately suffers.
Invoice factoring includes optional bad debt protection which protects the business in the event of non-payment of invoices and bad debt – giving valuable peace of mind that the business is covered.
5) Bespoke Options
Invoice factoring solutions can be tailored to suit the needs of each business. We offer several options for business owners to pick and choose and create a facility that works for them.
If you are new to invoice factoring and would like some advice, please contact us today on 01908 268888 and we will provide you with a tailored quote for our cash flow services.
Alternatively, if you are already using invoice factoring and would like to see how much money we could save you on your facility, please do get in touch and speak to our friendly experts today.