Getting paid for services rendered is a common ongoing challenge most small business owners face. You deliver the goods or services to customers and even after issuing the invoice it could take up to 60-90 days to get paid.
What most companies don’t understand, is that paying late actually hinders growth. Being able to plan and take up new market opportunities enables entrepreneurs and suppliers alike to invest in their staff, new resources and to innovate. A constant cash flow struggle takes far more energy from business owners than anything else.
Businesses typically turn to banks for their financing needs and banks typically provide financing solutions in the form of loans. Loans often require collateral, approvals can take months, and financing is often inflexible, with early repayments if you end up requiring less financing than expected (or for a shorter period) incurring an early repayment fee.
Alternative finance solutions
Invoice Finance and invoice discounting is a type of funding solution that enables your company to develop, grow and prosper. By being able to unlock cash out of your unpaid invoices, you will be able to wait that little while longer for your customers to pay because you have advanced cash to bridge you until that time comes.
This method allows you to carry on with your daily operations because you have the working capital available to do so, you can then use the funds to invest in your production, staffing, expansion and overhead costs. Your business relationships won’t be affected by adopting this financing method because the process is confidential, so your customers won’t be aware that you are using it.
Getting financed through selling invoices is not the same as taking out a loan. Unpaid invoices are a type of accounts receivable or advanced cash flow because it is money that you will be receiving from your customers or suppliers.
In other words, selling an unpaid invoice — unlike taking out a loan — will not generate business debt, and hence, will not negatively impact your credit rating.
>> 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.