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5 Benefits of invoice financing – your solution to unpaid invoices

Unlock cash stuck in outstanding invoices

Need to boost your cash flow?

For your business to run smoothly, you need to maintain a healthy cash flow.

Many small and medium businesses face a common dilemma: from time to time, they have to deal with late payments from customers. 

Benefits of invoice financing

This can negatively affect your cash flow. Fortunately, invoice funding can help you. You can receive a cash boost while you wait for your customers to pay you.

In essence, invoice funding is an advance on your unpaid invoices. If your cash is tied up in outstanding invoices, you can borrow money against the outstanding amount. Having this cash freed up can allow you to grow your business and reinvest in operations.

Invoice financing process

The basic process works as follows:

  1. Send your client an invoice as per usual.
  2. Sell your invoice to a lender that offers invoice financing.
  3. The lender advances up to 80% of the invoice.
  4. The customer settles the invoice.
  5. You pay the lender the amount advanced plus a fee.

This financing option gives you the chance to accelerate your business growth, pay suppliers and employees and improve your cash flow.

Top benefits of invoice financing

Improve cash flow.

Don’t wait for 30, 60 or even 90 to get paid by your customers. Invoice financing gives you access to immediate cash. This means, your business doesn’t have to take a knock because of unpaid invoices.

No need to apply for a traditional loan – get immediate cash.

Invoice funding is different from a traditional loan. Loans usually come with monthly interest fees and add liabilities or debts to the balance sheet of the company. Invoice funding gives you access to the money your clients owe you.

Get access to funds for emergencies or any sudden increase in orders.

Smaller companies often have to turn down opportunities due to limited cash flow. Invoice financing enables you to take on bigger projects without taking out a conventional loan. These bigger opportunities can lead to business growth.

You only need to settle the financing once your client pays their invoice.

No need to stress about interest payments. You only need to settle your invoice financing, plus a fee, once your client has settled their invoice. This means you can pay your bills, payroll and taxes instead of waiting for clients to pay you first.

Applying for invoice financing is quick and easy.

You don’t even have to leave your office to apply! Click here to find out more.

Is invoice financing the right option for your business?

If you apply for a traditional loan through a bank, you will need substantial assets or a long credit history. It also often takes longer to get approved financing through a bank. If you want to bypass the stress and hassle of applying for a traditional loan, you can opt for invoice financing. This way, you can get cash quickly.

Invoice financing can help you speed up your business growth. By receiving funding of up to 80% of your customer’s invoice, you don’t have to worry about unpaid invoices any longer. 

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