How invoice finance can help in tough trading conditions
Amid tough trading conditions, including rising energy costs, general inflation pressures and labour and supply shortages, your business may find itself in need of a cash boost.
Slow customer payments can also leave your business with cash flow issues, which is where invoice financing comes in. Providing quick access to cash when you need it most, it’ll help your business to sail through whatever tough trading conditions it’s presented with.
How does invoice financing work?
Invoice financing, or cashflow finance, is the process whereby unpaid invoices are effectively sold in return for up-front finance. Unlike other finance options, invoice financing requires no lengthy process of approval and is quick and easy to set up. An invoice financing company, such as Wiseman Finance, will negotiate a flexible repayment term with your business, with fees typically being a small percentage of the invoice cost.
Here’s how invoice financing can support your business during difficult trading conditions:
1. No long waits
Waiting for a customer to pay their invoice can leave your business struggling for cash. After all, you’ve likely paid out to provide them with a product or service. With invoice financing, there are no long waits for payments. Instead, your business can benefit from cash when it’s needed most.
2. No high-interest rates
Unlike alternative financing options, invoice financing doesn’t leave your business in debt and there are no high-interest rates to contend with. Instead, you’re passing over your invoices to an external company to handle the payment collection.
3. Increased capital for your business
When trading conditions are tough, you may be looking for solutions to boost your cash flow to allow you to cover essential costs. Invoice financing increases the capital available to your business, so you can use it where it’s needed most. This can support your small business to sail through difficult periods unscathed, improving the resilience of your company.
Invoice financing from Wiseman Finance
Wiseman Finance are dedicated to providing innovative financing solutions that support small businesses to thrive. Our invoice financing service provides businesses with easy access to cash when they need it most. To find out more, get in touch with Wiseman Finance today.