4 reasons your small business should use invoice financing

As a business, you know how important it is to monitor your cashflow and invest your money appropriately. This can make waiting for customer invoices to be paid frustrating and can leave you out of pocket in the short term. That’s where invoice finance comes in.

Available to small businesses across the UK, this alternative funding solution is a great way to improve your cash flow and supercharge your business – here’s why.

What is invoice financing?

Invoice financing or factoring allows businesses to effectively sell their incoming invoices to a financing partner. This provides the business with an immediate cash boost and prevents them from waiting for the invoice to be paid. This process can typically take between 15 and 120 days, leaving some businesses with cash discrepancies that they can’t afford. It can provide an innovative financing solution that helps businesses to thrive.

Here are 4 reasons why your small business should take advantage of invoice financing:

1. It improves cashflow

Picture this: you’ve spent money purchasing materials, paying staff and providing a product or service to your customer. Now you’ve got to wait up to four months for that customer to reimburse you in order to make a profit.

Invoice finance eliminates this waiting period, providing a quick injection of cash into your business so you can keep improving your service and growing your customers.

What’s more, with no long-term commitments or the need to hand over your business accounts to a financing company, invoice financing provides peace of mind and security. You can also use it for one invoice or all year round, depending on the needs of your company.

2. There’s no debt to contend with

Unlike other financing options available to small businesses, invoice finance isn’t a loan and doesn’t leave you in debt. This means you can utilise the benefits of this service without worrying about putting your business in liability.

3. There are low fees

Invoice financing typically has low fees, which makes it a great solution for small businesses in need of a quick cash boost.

4. It can be anonymous

Another great benefit of invoice financing is that it can be confidential. While customers will usually make their payments to an account held by the lender, this will be in your business’s name. Your customers don’t have to know someone else is involved in the process, allowing you to retain a good working relationship with them.

Interested in invoice financing?

Looking to boost your business’s income quickly? Get in touch with us today to find out more about invoice financing.

invoice financing