Invoice Finance - A Funding option that is not celebrated enough!
Posted on 3rd August 2021 at 08:59
Are you as a SME aware and informed of options available to you and that there is not a one-size fits all?
Invoice Finance - A fantastic Funding Option!
Are you an SME needing a little lift to get back on your feet? Are you informed about the funding options available to you and that it is not always a one-size fits all.... You may have applied for the "Recovery Loan Scheme" (RLS) and are awaiting to see if you qualify, but is this the right funding option for your business ?
Enter Invoice Financing - What you need to know!
Have you found yourself having to deal with late payments which adversely affects your businesses cashflow? Invoice Finance is a great option to boost your cashflow while waiting for payment on your outstanding invoices, freeing up funds to get you through that difficult period.
Why consider Invoice Financing?
A finance facility to help leverage unpaid invoices and inject instant cash into your business.
The finance lender will release up to 90% of your outstanding invoices immediately.
On payment of the outstanding invoices the lender will release the final amount less any fees and charges.
Invoice Financing is more flexible than other business loans.
Funding grows in-line with your companies turnover.
Invoice Financing reduces the risk of defaulted invoices and late payments.
You only pay interest on the money you borrow.
What are the pitfalls of Invoice Financing?
Your company must be able to show and established track record.
With it being a short-term loan it usually comes with higher interest fees and costs.
Agreements could result in changes to the way you run your business.
Additional security such as personal guarantees may be required on request.
If your Invoice Financing is not managed properly, you could run the risk of your business owing debt.
Invoice Financing is the funding option that may just be the right choice for your business and that much needed cashflow. At Lending Made Simple we listen to your needs and find the funding option that suits your business. We take the time to find out from you what your long term, short term goals are and the cashflow you need to achieve those goals. We are here to work with you, together we will tailor make a funding option that works for you!
Tagged as: cash flow management, Cashflow, Finance, Funding for Growth, Invoice Finance, Lending, Lending Made Simple, Loans, Making Lending Simple
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