Improving your Cashflow with Invoice Finance
Invoice Finance is a great alternative to loans and fixed borrowing that creates cashflow in your business. Reinvest your cash back into your business by releasing money owed to you by your customers.
A flexible approach that allows you to offer competitive credit terms to your clients without a restriction to your own business growth.
Invoice finance has no impact on your credit rating, it will significantly reduce your operational costs and means you don’t have to investigate any high interest borrowing options.
How does Invoice Finance work?
- Firstly, you provide the workers/goods or services to your clients.
- You invoice the client and send a copy to your finance provider.
- Your financier will release cash tied up in your unpaid invoice.
- The debt will then be collected and there is a rolling door function ready for you to use again.
What to look our for from your Invoice Finance provider
Working with a financier should be stress free and help to take the pressure off the business. You must build up a good relationship and mutual trust. There are a few things to ask about when you discuss your options.
- Any undisclosed charges
- Concentration limits
- Charges on minimum fees
- Full Transparency
- Experience and knowledge of your industry.
- How long you are tied into your contract.
That really is all there is to it! Give yourself time to focus on your business growth without any cashflow restrictions.
Blog by WeDo Finance
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