Is Invoice Finance right for your business?

For many businesses Invoice finance can provide an ideal solution to cash flow problems.  Although the list is pretty endless, it can be particularly advantageous if:

  • You invoice your clients
  • You would like to outsource your credit control
  • You turnover more than £50,000 per annum.

This isn’t to say that this means it might not be right for you, even if you don’t fall into any of these categories. Indeed, many of the businesses that go into Invoice Finance may not have a turnover of £50,000 per year, some may have only just started trading and so have no trading history.

As always in business, if you’re not sure you can always ask.  For most businesses there are things that can be tweaked so they can apply for Invoice Finance.

What about from your perspective?

 The best way to work out if Invoice Finance is right for you is by looking at how you run your business on a month by month basis. What do you spend your time doing – and what could you be spending your time doing.

Let’s say you are spending a week a month chasing invoices for payment.  If this happening then the chances are that you have a lot of late payers (it just pans out like that).  So if you could free up your time, by someone else doing the credit control, you could be doing more sales related work, which would in turn mean more profit.

The question to ask is: If I wasn’t wasting time chasing invoices, that are late payers anyway, could I be of more use to the business?

If thats you then maybe you should be looking at Invoice Finance as a solution for your business.