Why should your business use invoice finance? This is a flexible, accessible way to access finance that many businesses are making the most of in the face of reduced funding from the banks. While the Budget may have been hailed as one that will help businesses, there’s still many things that you can do in the mean time – and that includes exploring your alternative finance options.
While loans and overdrafts may be the most commonly thought of means to secure finance for business, there are other options out there. So what are the benefits of using invoice finance instead of holding out for those hard to access bank loans?
Control, reliability and improved cash flow
You need to have a steady cash flow in order to make your business a success. One thing all successful businesses have in common is good cash flow; one thing that can sink any business is tight cash flow which strangles day to day running. Invoice finance helps you to control your cash flow so you know you’ve got working capital to rely on.
Invoice finance makes sure you know your working capital so you can run your business smoothly and efficiently. This means you’ve got the flexibility to make good buying decisions, negotiate discounts and take advantage of opportunities.
Stay in control of your cash flow by being sure you can get access to funds as and when you need to. Even if you’ve got a full order book, you might need to wait 60 or 90 days: factoring means that you can get hold of the funds within 24 hours.
There are invoice finance solutions for all types of business. If you want a short term solution, selective factoring might be for you as you can unlock funds as and when you need to. There are more structured invoice factoring and invoice discounting programmes if you’re looking for a longer term solution. With solutions for any business, from start ups to medium sized companies, invoice finance is a great option for a range of different circumstances.