What’s the best solution for my business? And if you use the money to help with cash flow, this means you’ll be able to promptly pay supplier invoices and this, in turn, can give you greater power to negotiate future discounts. Once you’ve released the cash you can use it to alleviate cashflow or help your business grow.Factoring and invoice discounting are agile funding options that adapt to the changing financial circumstances of your business and, unlike business loans and overdrafts, offer flexible funding without the headache of having to renegotiate the whole arrangement. And this funding is available without taking on the additional debt you would have to with a business loan. Entering an arrangement means you can release up to 90% of the value of any outstanding invoices and have the cash in your account within 24 hours.How can my business benefit from factoring or invoice financing?Īlthough there are differences between the two arrangements, the benefits of both factoring and invoice discounting are the same: You can choose to let your customers know you are using invoice discounting, or you can keep the service confidential. You keep control of your customer relationships, and your customers pay into a bank account in your name. Unlike factoring, you maintain responsibility for chasing payments and managing your credit control. As with factoring, you invoice your customers as normal and the invoice discounting provider releases an agreed percentage of the invoice value (typically between 80%-90%) within 24 hours. Invoice discounting is another way to release funds owed in unpaid invoices. They also handle the chasing payments and managing credit control, while you are freed up to concentrate on other business priorities. You invoice your customers as normal and the factoring provider releases an agreed percentage of the invoice value (typically between 80%-90%) within 24 hours. If your business has money tied up in outstanding invoices, factoring is a funding solution that enables you to access your cash as soon as you raise an invoice, rather than waiting for customers to pay. Learning more about each of these may help you decide which option is right for you. There are two key types of invoice finance factoring and invoice discounting. What’s the difference between factoring and invoice discounting? If you issue invoices for goods or services to other businesses, invoice finance could give you the funding you need. Managing cashflow is essential to the success of any business.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |