To Keep the cash flowing is the most important part of any business, even more so in a recovering economy.
There are a number of advantages that invoice finance offers over other funding options.
Accessing the money you’re owed allows you to grab new opportunities, bring plans to life, buy new equipment, be more efficient and negotiate the best terms with your suppliers.
The sales ledger is used to secure access to funds, so as your business grows so does the amount of funds that can be made available to you. It is an ongoing source of funding sales, as your business grows and sales increase, so does the amount of working capital.
The line of credit enables you to take advantage of special or end of line deals, buy the equipment that will help increase work-flow and take on extra business that may have previously stretched cash-flow.
Paying suppliers early lets you buy in larger quantities and take advantage of any volume discounts available.
An extensive credit history is not required in the UK – the sales ledger of the business is used to secure access to funds. This means those businesses which may have been turned down for bank funding have a viable and trusted funding option.
None of us know ‘what is round the corner’, much as we plan, forecast and focus on our businesses, we cannot cover for the unexpected. Consider invoice discounting a safety cover for your company’s protection and a sudden unforeseen change in circumstances can be instantly addressed.
Compared with other types of business finance, invoice finance is a cost effective solution, and when compared with bank funding, the cost of money advanced is competitive.
Typically a facility can be set up in seven to ten days, but it can be quicker, it’s really down to how quickly you can provide information.