Those business owners who invoice their customers for payment will no doubt be all too aware of the significant delays between sending an invoice and receiving the money. The typical waiting period is between 30-120 days, which can make it difficult to plan ahead for business operations.
Invoice finance is usually offered by specialist firms/brokers such as Touch Financial, and bridges the gaping chasm between issuing an invoice and receiving payment. Here is an explanation of this service as well as some of the benefits.
How Does it Work?
Invoice finance has been used by many companies for a number of years, and can completely change a business’s operating capabilities as well as improving its solvency. It involves a third party lender providing you with a large portion of the invoice’s value immediately (with their fee deducted).
You are then free to use the money as you see fit. You receive the final portion of money once the customer has paid the invoice in full. Often, the money can be accessed within a very short space of time.
Cash Flow/Growth
The main benefit of using invoice finance services is that it helps you to stimulate/maintain a healthy cash flow in the business. As any experienced business owner will tell you, this is one of the keys to success in any business, and is sure to help you achieve your goals much faster.
With a healthy cash flow, you can have greater confidence in your business’s capabilities, taking on more work and bigger jobs. This means that business growth can also be accelerated using invoice finance, allowing more opportunities to open up.
Competition
It may well also be the case the using an invoice finance service will help you stay ahead of competitors who are not using such a service (or keep up with those who are). In the more competitive industries, invoice finance can be invaluable, as it can helpto facilitate much more effectiveness and efficiency in your business and its processes.
With a stable, functioning cash flow, and the means to receive money for invoices immediately, you can constantly reinvest in your business, and grow faster than your closest competitors.
Invoice finance services can come incredibly useful, even when only used intermittently. If you invoice your customers, then it is well worth considering the advantages of invoice finance, and how they may help your business prosper in the long term.