Invoice discounting and factoring are targeted ways to benefit your business cash flow. One thing all successful businesses have in common is good management of their business cash flow – this is common across all types of business and industry, not only small businesses and start ups but medium sized and larger businesses as well. If your business is having cash flow problems, then turning to invoice finance could be a good option.
Cash flow problems are some of the most common for many types of business. You might be regularly struggling to meet the demands of payroll, HMRC or suppliers, and you might always be worrying about that big unexpected bill coming in when you just don’t have the working capital to deal with it. However, if you’ve got sales on your books – even if your customers are dragging their feet in paying – you have a valuable resource against which to raise capital.
Invoice finance allows you to release the cash tied up in unpaid invoices. This means you can get a regular, predictable influx of cash flow into your business. This means you will no longer be waiting for weeks or months for customers to pay their bills, and you’ll be able to plan ahead and invest in your business. Factoring services also include a full credit collection service, where the lender will professionally collect invoices from customers, taking another strain off your shoulders. Larger businesses with inbuilt finance departments may not need this service and so should consider invoice discounting, which leave you in control of credit collection.
If your business issues credit terms of between 30-90 days on an invoice basis, then you could be eligible for invoice finance. Get your cash flow management sorted with a targeted invoice factoring programme.