An Invoice Finance agreement can be completed in as little as 24 hours, a positive timescale for a business needing working capital or looking to grow. Waiting for payment can sometimes stunt business growth, particularly when the business is potential-rich but cash poor.
Getting your invoices paid usually within 24 hours of the invoice being issued takes away the risk of late paying customers.
Yes, there’s a charge associated with an Invoice Finance service, but this charge should be weighed up against the costs of other fundraising methods: bank loans, credit cards, overdrafts or borrowing from family and friends. If you look at bank loans or overdrafts you might also need to off-set business assets or property as collateral for cash.
Even if you can’t get a bank loan, you could still be considered for invoice finance. There are a few reasons why you wouldn’t be considered for bank finance: you might have been a Director of an organisation that’s gone bankrupt in the past, or you might be a start-up with no financial history.
As the business grows, the amount of cash available through invoice finance rises exponentially.
Alternative finance providers take many things into consideration when deciding whether to offer you their services: the experience of the Directors in your organisation; the business vision and strategy; the quality and credit rating of your customers and potential with regards to customers in the pipeline.
The invoice finance organisation is collecting money owed. This means that as the business grows, the amount of cash available through invoice finance rises exponentially.
For smaller businesses with no collections team, invoice finance is also ideal if your team is stretched. The organisation can run invoice collections from beginning to end. Usually you get to agree in the contract whether or not the organisation tells your customers that they are working on your behalf. Some organisations allow you to retain control, working confidentially under your name.
Working with an invoice finance organisation allows you so much more flexibility than if you were waiting for an invoice to be paid.