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SME Advantages from Invoice Factoring

Are you looking for a new way to unlock funding for your business? If so, invoice factoring could be the answer. However, this is one form of finance that’s often misunderstood – so what advantages does it offer to small businesses?

1) Invoice finance is flexible. 

There are no rigid restrictions to the amount you can borrow, and the total can grow according to the expansion of your business – unlike loans and overdrafts. More turnover means you’ll be able to get more funding with invoice finance.

2) Funding is based on your current business performance – not years’ old finances. 

Rather than relying on years of financial history, invoice finance is based on your current business performance. This makes it an accessible option for start up businesses without a long track record of sales.

3) You can access up to 90% of the gross value of an invoice within 24 hours of raising the invoice. 

Anyone who has applied for a bank loan will know how fast this is and what benefits having such quick access to funds will bring.

4) Invoice finance does no interfere with your day to day business. 

You carry on producing goods and services as normal and then issue your client invoices. Once the details of the invoices are passed onto your invoice finance provider, you’ll soon have the funds made available – simple.

5) Factoring can include a complete credit control system. 

Many small businesses struggle to find the resources to chase invoices and keep track of payments, resulting in a whole host of problems. Factoring lenders are able to take care of all this for you with some factoring plans – chasing customers, sending statements and collecting payments. This takes the strain away and leaves you with more time to get on with growing your business.

Invoice finance is a fast growing alternative options to the banks – which, as you can see, holds plenty of advantages over traditional financing!

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