Do you have customers that are slow at paying their invoices? If so, then you will be aware of how much it can drain your working capital. Unless your business has a steady cash flow, paying employees or suppliers can be a big problem.

If you work with medium or large companies, you will be expected to provide a 30 day payment term if you want to keep their business. Approaching a bank for funds can help some, but not everyone has this option. Prior to offering financing, banks will often ask to see 3 years worth of accounts, as well as personal credit history.

If you are unable to get a business loan, invoice financing is the best way forward. Invoice financing is now very popular with businesses of all sizes.

Invoice financing gets your invoices paid in around 2-3 days, thus eliminating long payment periods. It gives you a predictable cash flow, allowing you to pay employees, suppliers and grow your business. Invoice financing works as follows:
• You deliver products or services and generate an invoice for them
• You need to send a copy of invoice to the invoice financing company; who advances you approximately 85% as an initial installment
• Once the invoice is paid, you will receive the remainder

So, if you want to get the working capital for your business, invoice financing is the best solution.