How Small Businesses Fund Growth

In today’s business landscape, there are various alternative sources of finance that differ from traditional forms of lending and doesn’t impose any debt on your company.

This type of funding, increasingly preferred by many SMEs to bank loans or overdrafts is known as Invoice Finance and enables companies to sell unpaid invoices to a finance provider, unlocking most of the money owed long before the invoice is finally settled by customers.

Statistics from UK Finance show that invoice finance advances increased by around 5% last year, 2018, at a time when traditional bank funding for SMEs was falling. The total pool of invoice finance to SMEs is roughly £9.5bn.

3 Industry Facts

The growth in the industry indicates that entrepreneurs are changing attitudes to this type of funding. In the past, invoice finance was often seen as a last resort amid fears customers would regard such arrangements as a sign of financial weakness. However, this is simply not the case. Invoice finance is an innovative way to grow your business.

Here are 3 facts about the invoice finance industry:

1. As new types of invoice finance services have developed, often enabling SMEs to keep complete control of their customer relationships, businesses have focused on the advantages of funding in this way. Rather than worrying about payments, they are more focused on core business activities.

2. One key attraction to invoice finance is that it is affordable, faster and flexible than traditional funding. Invoice finance providers take a fee for the service they offer, however, this can be more cost-effective than paying interest charges on a loan.

3. SMEs applying for bank loans or overdrafts usually have to commit to facilities of a set size – and renegotiate if their needs change – with applications considered on the basis of their trading history. Invoice finance is much more scalable. As businesses grow and issue invoices for larger sums, the pool of funding available organically grows with them.


>> 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.

For more information, visit us or contact a member of our funding team: [email protected]


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