Invoice factoring can be helpful for small and large businesses

Lack of cash flow is one of the major problems that most small and growing businesses face from time to time. But invoice financing is one method that can prove to be quite helpful for businesses. It can not only optimise your cash flow, but also eliminate the troughs and peaks in your bank account.

Within a business, invoices are generally overlooked as a flexible asset. Instead of having your money being tied up in invoices, you can obtain an initial payment of up to 80%, and the remainder when your customers pay the invoice finance provider. When the invoice financing company pays you the remaining amount, they will deduct the service fee and give the rest to you.

Invoice factoring is a facility that includes funding of up to 90% of the value of invoices upfront. It also employs a dedicated credit controller to help you run your ledger.

Factoring is a great solution for start-up businesses as well as medium and small businesses. A fast expanding company can experience severe cash-flow problems as more and more supplies are needed to be paid to support continued growth. For businesses that do not have in house accounts or credit control, invoice factoring is an economical alternative. Large businesses also use invoice factoring to recover unpaid invoices, which is a major business asset.

So, if your business faces cash flow problems, opting for invoice factoring is a good solution.