finance is ideal for those business houses that trade in goods
on credit basis wherein he doesn’t have to wait two to
three months for his invoices to be paid. In fact through
invoice finance he gets the money due within 24 hours. In short,
finance turns your unpaid invoices into hard cash, thereby
helps bridge the time and cash flow gap until your customer
decides to pay. It can also be said that invoice finance
gives companies the opportunity to transform unpaid invoices
how does it work? Here the invoice financier purchases your
outstanding credit sales invoices and you get around 80 per cent
of the value of these invoices within 24 hours. The providers
then collect the monies owed from your debtors leaving you free
to concentrate on your business. The remaining 20 per cent, less
fee, is paid to you when invoices are settled.
The advantage of invoice financing is that it is extremely flexible
with no concentration limits or maximum advance rates and it
can provide as much as 90 per cent of gross invoice values. Invoice
finance also fits in with your cash flow requirements, and with
no set minimum period stipulated it leaves you to run your business properly.
Invoice finance involves financing of a single debtor, a group
of debtors or even the whole sales ledger.
of invoice finance is that you have access to the money owed
to you within
24 hours instead of having to wait two
or three months for your invoices to be paid; peace of mind from
knowing that your invoices will be paid immediately; no chasing
slow paying debtors, thereby leaving you free to concentrate
on your business; improved cash flow can help you to obtain early
payment discounts from your suppliers; flexible source of working
capital you’ll be able to respond more quickly to market
opportunities; flexible cost-effective alternative to an overdraft;
and protects the goodwill of your business.