There are many reasons entrepreneurs seek funding for their businesses. They may want to increase levels of production and manufacturing but lack the resources to do so. They may need the capital to invest in equipment or marketing a new product or service they have developed. Often, they simply need access to the many valuable resources investors have at their disposal.
What financial resources are available?
Invoice factoring is a flexible financial resource to use to keep cash flow running while avoiding debt. All you need is to look for a suitable factoring company that meets your business needs.
Traditional lending often requires security and is not designed for specific business needs. Invoice finance, on the other hand, provides SMEs with the most valuable commodity: Cash.
The biggest challenge that SMEs face is cash flow. Cash flow is king, and that’s where invoice finance comes in. If you borrow money that enables the growth of your business, the finance cost is part of the cost of your sales. The upside is that you have access to cash, enabling growth.
In competitive industries, it’s hard to remain in the game. Success can come down to how much liquidity you have and speed.
An invoice finance facility, used appropriately, provides a business the ability to retain customers on attractive terms as well as ensure reliable cash flow to the business. Additionally, immediate access to funds means that while your competitors are waiting months for payments to come in before committing to sales, your business could be taking on new business opportunities earlier and focus on fueling growth plans.
The benefits of Invoice Finance
Invoice finance facilities provide an accounts receivable service. In some cases, outsourcing this work can be more cost-effective than hiring a full-time resource
Additionally, the availability of cash to the business owner via invoice finance can also mean the business can access supplier discounts for volume or early payment, helping to maintain and boost margins
At the same time, the business’s own early settlement discounts can be reduced or even completely scrapped.
A fully disclosed factoring facility or a confidential invoice discounting facility
Match sales to repayments, enabling cash flow management
>> Is your business in need of fast, short-term financing? Do you need to access cash faster than your customers pay you?
Populous World is an Invoice Finance provider that unlocks working capital for UK businesses.
Bridging your business’s cash flow gap is something that Populous World excels in delivering, providing you with the funding tools to grow and sustain your business.