Invoice Finance can be a great way to help businesses that need cash to reach the next level. It is a smart solution especially for those who are uncertain about taking on debt because it releases funding from unpaid invoices. This means that increasing company turnover can unlock more funding and plays an important role when reviewing your business plans and future strategy.
Businesses with access to working capital are undoubtedly more confident in their business activities and can trade more entrepreneurially, responding faster to new tender opportunities and access to new markets. Invoice Finance is a flexible and efficient way of generating cash flow quickly when you need it, and because it grows in line with your business orders it is a good strategic driver for growth. By releasing working capital, you get the freedom and flexibility to invest in growth, or to diversify into other activities.
Growth is the key word to remember and is the reason many businesses are utilising invoice finance. It should not be viewed as a financial weakness to use this form of finance. Many dynamic and high-performing businesses are prevented from growing by restricted working capital – whether it is tied up in invoices or stock and plant. Invoice Finance unlocks this working capital and is helping many businesses to realise their true potential.
A clear example of this is provided by Co Leitrim food manufacturer Chef in a Box. Founder, Paul Mulligan, says having an invoice finance facility has helped the business to grow - increasing the number of supermarkets he supplies from 60 to 159, and more than doubling turnover.
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