Many business owners and CFOs ask if invoice finance is right for their business. So we decided to list common scenarios where invoice finance is the best solution for cash flow management.
If a large part of your cash flow is spent on labour, then invoice finance means your teams get paid on time, every time. As you issue invoices to your business clients, you can unlock up to 80% of the invoice within 24 hours. Several labour-hire firms use our services to smooth out their cash flow. Especially where they have to agree to longer payment terms and need to meet payroll weekly or fortnightly. With invoice finance, they never have to wonder how to meet payroll.
Big cost items like end-of-year tax payments don't have to create cash flow stress. Having an invoice finance facility in place provides the necessary cash your business needs now. Remember, with invoice finance, you don't need to put your personal assets up as security - your invoices are the asset.
With early access to cash flow, it is possible to bring on business development people who can help secure new clients. This is particularly important in times of inflation and recession. As businesses look for better value from their suppliers, there are more opportunities to capture larger market share, if you have the funding to support it.
Early payment discounts are invaluable when businesses want to improve margins. Invoice finance gives businesses the extra financial firepower to negotiate purchases based on payment terms. Vendors prioritise customers who pay on time or early as supply chains get stretched.
Invoice finance grows with the value of the invoices you send. So if you want to get paid faster, and have better cash flow you should include invoice finance in your working capital toolbox.