Help is available if you need to improve your cash flow and have unpaid invoices. Invoice financing involves unlocking the value in your unpaid invoices and getting the money when you need it, even before it is due. More and more companies are experiencing the benefits of invoice financing. So, what is invoice financing? Invoice financing involves borrowing the money you’re owed from an invoice until it is paid.

cash flow

Two main options

There are two forms of invoice financing, which are invoice discounting and invoice factoring. With invoice discounting, you borrow around 85-90% of the money you’re owed from the financier until the invoice has been paid. You remain in control of chasing the money up, which is ideal for some companies who don’t want to risk their business relationships by getting a third-party overtly involved. Invoice financing can be the difference between putting your money into a project or idea at the right time and missing out.

Two main options

Make the right choice for you

With invoice factoring, a financier will essentially buy your invoice from you, take a cut and chase up the payment themselves. One of the main advantages of this is that you can spend time you would be spending on chasing up money focussing on other duties safe in the knowledge that things are being handled by experienced professionals. You may need to pay slightly more for factoring, but you will essentially be getting the services of a top outsourced payments department. A growing amount of companies are getting the money owed for invoices by using these services. Any trustworthy invoice finance company will know that what’s right for one company isn’t necessarily great for everyone and will therefore talk you through your options so you can come to an informed decision.

Invoice factoring

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