With the variety of business finance solutions available, often it can become confusing which is the best option to select. If we solely look at sales invoice finance, it is an ideal choice for a business that needs to access finance quickly as much of their money is tied up in unpaid invoices.
Also known as debt factoring, invoice factoring or invoice discounting this is a flexible funding solution which has a quick approval process and is excellent for allowing a business to improve their levels of cash flow. In essence with sales invoice finance, a company passes the unpaid invoices onto a debt factoring business. They will then immediately pay a large percentage of the invoice directly to the business and will collect payment from the customer when it is due.
Before considering invoice finance it is recommended to discuss it first with a finance specialist. To help, the following provide some of the key benefits:
- Any successful business needs a healthy cashflow, invoice finance will help to maintain a good finance safety net ensuring operational costs are always maintained and business growth plans fulfilled.
- Rapid expansion through taking on new clients and new projects will result in the business having to increase staff numbers. An invoice facility will enable extra staff or temporary employees to be bought in to the company thanks to the boost in working capital.
- By having quick access to money, the risk of bad debts is negated. Certain providers will also provide a bad debt protection solution should problems arise, and the debtor fails to pay their bill.
Sales invoice financing can be utilised across a range of industries. In recent months we have supported a pharmaceutical business, a communications business and a training business all who were looking to fulfil growth plans and in need of an increase in working capital.
If you have any questions in relation to sales invoice finance, then our team are on hand to help. Please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
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