It has been found that almost half of invoices are paid late which deprives many small businesses of cash. Tight cash flow makes it hard to pay bills, hire staff, buy inventory, or expand.
Historically, businesses in this predicament have either taken out a loan or struggled to make ends meet. Invoice finance might be a more flexible and speedier choice.
Below, we’ve included 6 ways invoice financing can help with cash flow management…
Borrow Money Without Taking on More Debt
Unlike typical loans, which must be held on the balance sheet for at least a year, invoice financing works differently. It expedites a company’s access to money owing to it. This form of financing is typically repayable fast, making it an excellent short-term alternative.
Only Make Payments when Money is Received
Typically, invoice finance is not repaid until the original invoice is resolved. Businesses that employ these services are not required to make fixed-term payments. That’s fantastic for cash flow.
Feel Better about Major Projects
On large contracts, small firms incur significant expenditures. When a large corporation is involved, payment is frequently delayed. That’s not a good combination. Invoice finance enables organisations to take on potentially profitable contracts without becoming overburdened.
Choosing how much Money you Require and how Frequently
When using current invoice finance providers, businesses may determine how much credit they take out. Previously, they had to sell all of their accounts receivable. However, they may now maintain control over their bookkeeping and credit requirements. Furthermore, because invoice finance is often paid back in months rather than years, businesses can borrow again if necessary.
The Funds are Nearly Immediately Available
Businesses that use online accounting and invoicing software can acquire invoice financing within a day or two after applying. This enables you and your clients to respond quickly and resolve cash flow concerns as they arise.
You can Apply for Invoice Financing in a Matter of Seconds
Small company owners do not need to leave their office, store, or workshop to qualify for invoice financing. They may connect to suppliers using online accounting software, mark the outstanding invoices they want to finance, and apply right away. There is no paperwork to do. They may even handle the entire procedure from their mobile device if they use the correct software.
Apply for Invoice Finance Today!
Apollo’s Invoice Finance facility provides you with money, based on what your customers owe to your business through your invoices. Allowing you to quickly access up to 90% of the value of the invoice, usually within 24 hours.
Releasing these funds allows you quick access to cash that is owed to your business. Meaning you do not have to wait to receive payment from your customers. This can be extremely helpful for cash flow management, and investment purposes.