If you’re looking for a solution to the pains of late-paying customers, you’ve likely come across invoice finance. Invoice finance is quickly gaining popularity as a well-respected alternative to traditional bank loans. This is due to the wealth of benefits it brings to small businesses, which we’ll discover below.
In short, invoice finance is a funding option that lets businesses receive a percentage of their invoice value (typically up to 90%) within 24 hours of issuing the invoice. The beauty of invoice finance is that it doesn’t add more debt. Instead, it takes advantage of money already owed to you, just ensuring you get paid quicker instead of waiting 30+ days.
If you’ve been looking into invoice finance, you might be wondering what benefits it can bring to your business. In this blog, we’ll look at six ways invoice finance can set you on the path to success.
Get Cash Immediately:
One of the most significant advantages of invoice finance is its ability to provide immediate access to cash. In the UK, businesses typically have to wait an average of 31 days to get paid by their customers. However, with invoice finance, you can expect to receive payment within 24 hours of issuing your invoice. This quick turnaround time can provide a much needed boost to keep business operations running smoothly.
Improve Cash Flow:
By facilitating quick payments on your invoices, invoice finance helps you maintain a steadier cash flow. For small businesses especially, having a consistent flow of working capital is crucial to cover day-to-day expenses and unexpected financial challenges. With invoice finance, you can mitigate the impact of late payments and make sure your business has the financial backing it needs.
less Time Chasing Payments:
One of the most time-consuming tasks for managing accounts receivable is chasing down late payments from customers. Fortunately, many invoice finance lenders offer credit collection as part of their offering (including us!). By outsourcing your credit collection to professionals, you can free up your time to focus on core business activities.
Tailored Solutions:
Invoice finance facilities are highly customisable to suit the unique needs of each business. When setting up a facility, providers will often tailor the solution to align with your requirements. Additionally, as your business grows, your funding limit can also be increased to accommodate for this growth.
Simple Qualification Process:
Compared to traditional bank loans, which often involve lengthy application processes and tight credit requirements, invoice finance is a much more accessible path to funding. Unlike bank loans, which focus on credit score, invoice finance prioritises the value of your invoices. As long as you’ve got a strong track record of invoicing customers, you’re likely to find many lenders eager to support your business.
It’s also worth noting that invoice finance doesn’t discriminate businesses with CCJs or past insolvencies. Whilst some lenders may be must risk-averse, there are lenders, such as Apollo, who are happy to fund businesses regardless of past hurdles.
Supports business growth:
With improved cash flow and immediate access to funds, invoice finance opens the gateway for business growth. Whether you’re looking to hire more staff, buy more stock, or expand into new markets, invoice finance provides the financial confidence needed to pursue these opportunities.
In conclusion:
The benefits of invoice finance are undeniable, but it’s important to partner with a reputable lender that understands the unique needs of your business. At Apollo Business Finance, we specialise in providing bespoke invoice finance solutions designed to support your growth and success.
Interested in learning more about how invoice finance can benefit your business? Contact our team today to schedule a free consultation and discover how we can help you unlock your businesses full potential.
