Lots of business people - even experienced Finance Directors - seem to have a slightly confused view of what invoice
finance is, what it can do and what size business can benefit.
What
is invoice finance?
Most businesses have to wait between 30 to 90
days (sometimes even longer) from when they raise an invoice to when they
actually get the money in their account. Invoice finance fills this gap. When you use
invoice finance, you get 90% of the value of the invoice within 24 hours and
the remaining balance, less agreed fees, when the customer eventually pays.
What
can it do for your business?
The immediate benefit is improved cash flow.
Instead of having to wait for your customer to pay, carrying all those business
overheads and costs while you wait, you get most of the money you are owed
straight away, so you can invest that back into your business.
Are
there any other benefits?
Yes - invoice finance allows you to fund your
business based on your turnover, rather than your credit rating. As you grow
the business you have more money available. It can help you to make more
accurate financial predictions and allows you to react faster to changing
market conditions.
Invoice finance can also offer you the option of
bad debt protection, which means that you can get on with running your business
without worrying if your invoices will get paid.
What
size business can benefit?
Invoice finance can work for all sizes of
business, from start-ups and SMEs to larger organisations. Close Brothers Invoice Finance typically supports
businesses with between £0.5m and £10m turnover.
Want
to know more?
If you’d like to know more, take a look at the
helpful video at: http://www.closeinvoice.co.uk/videos/index.html
