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Invoice Finance – The Benefits

Invoice finance is a targeted way to manage your business cash flow through alternative funding, especially if your business is struggling with late payment. If customers aren’t paying on time, then it’s very hard to deal with cash flow, cope with unexpected expenses and even keep afloat day to day. There are many benefits of invoice finance which vary according to your business size and type – but which are the most common ones you will experience

First things first – improved cash flow is one of the biggest boosts your business could experience from invoice finance. Cash flow is the life blood of any business, no matter what size. Having good access to working capital allows you to grow and make the most of any opportunities that might come up, as well as helping you to cope with the opposite – those unexpected expenses that can create real strain within a business.

Factoring releases a reliable lump sum of working capital into your business. This helps day to day expenses, but it can also help you to make those big, one off purchases that you might otherwise struggle to fund. New vehicles, new staff or new machinery or anything that’s a big cash outlay can be funded through invoice finance.

Factoring lets you release a lump sum of cash into your company on a regular basis. Not only can this help day to day expenses, but you can also use this to make one off purchases that you might otherwise struggle to raise the funds for. Think new vehicle, machinery or even a new member of staff – all of which can help you to boost turnover and growth.

Another big advantage that you might experience is reducing stress around the credit collection process! Many small businesses wait too long to start chasing invoices, often due to workload and not having a finance infrastructure in place – factoring, however, has a full credit control control process built in, where the lending company will collect customer payment quickly and professionally. Larger businesses not in need of this service should look at invoice discounting services instead.

Invoice finance has a huge range of benefits – take a look to see how it can benefit your business.

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