If you haven’t noticed already it’s December. The beginning or end of the month for most companies signals the onslaught of invoicing. So, you may have already sent out hundreds of invoices to clients, but when will they be paying, if its before we break up for the festive period fantastic! If not, when are you going to get your money? Some payment terms span up to 90 days but generally 30 days is the norm.
If you are worried about getting your cash before Christmas, don’t worry about your clients. Yes, we realise it’s a crazy thing to say but there is a solution where by you can have your cash tomorrow. Yes that’s right- tomorrow!
Invoice Discounting is a financial solution which allows small and medium enterprises to gain capital tied up in their invoices. If you have 100 invoices you can choose to use them all, if you have one or two big invoices you can use just them. Basically, you contact a Factoring lender, such as Select Factoring and they will take on your invoices, give you up to 85% of the total of the capital and they can do this within 24 hours.
You can then choose another option of whether you would like the factoring lender to carry on pursuing your clients for payment, or if you would rather do this yourself.
So, there is no need to worry about payment over the festive period. If your clients are credit worthy you will benefit from using Factoring and the cost is tiny.
Don’t be penniless during Christmas, companies still need to carry on producing and selling, this way enables companies to grow and continue without closing down over Christmas. After a hard days work, you can also treat your staff to a Christmas bonus or well deserved drink. Think about your funding over the festive period.