Invoice Finance
To find out if you need invoice factoring, ask yourself these questions
- Is your business a new start-up?
- Is your business growing rapidly?
- Do your customers take too long to pay you?
- Do you want to expand your business, but don’t have enough cash?
If the answer is yes to any of these and you deal in business-to-business marketplaces, then you need invoice factoring. Here is how it works:
- Your business performs a service or provides a product to a client.
- You raise an invoice and send it to the invoice factor.
- The invoice factor pays you up to 80% of the value usually within 24 hours.
- The invoice factor runs your sales ledger, collects the money, deducts a small fee and passes the balance to you.
Summary of client benefits
- You make money by having your invoices paid in hours not weeks or months
- You make money by investing your increased cashflow in your business, perhaps generating new sales.
- You deal with experienced professionals who have been in this business for three decades
- You don’t waste time chasing payment of your invoices
- You save money by not needing credit controllers
- You don’t exhaust your line of credit with the bank as they give you a new and independent line of credit
- You deal with friendly people focussed to your needs and supreme customer service
- You save time as they can make decisions quickly
- You improve profitability by them providing funds at a lower cost than bank loans or overdrafts
- You save time by letting them manage your sales ledger
- You save money by reducing your borrowings and overdraft charges by them factoring your invoices and forwarding you most of the money owed when you issue the invoice.
- You save money as having additional cash to spend means you can often get better terms from your suppliers.
