In A Nutshell
Invoice financing is a short term capital solution option for firms to meet short term liquidity needs by financing their slow-paying accounts receivable.
This financing option involves the sale of invoices to third parties who will (usually) advance approximately 80% of the invoice value, while the remaining 20% is received once invoice has been paid (excluding fees for financial option)
How can Invoice Financing help you?
Reap the benefits from this solution
Improvement in cash flow
The inevitable delay of payment through invoices means long periods where valuable cash flows are hindered that could have been reinvested into more productive and value-creating areas. Invoice financing allows an immediate release of cash flows creating more opportunities for you to place more emphasis towards the future of the company.
Invoice financing provides an alternative for business growth without taking on extra liabilities (e.g. debt, loans) as collateral. In instances where funds can only be financed by a loan, your debt level will not be too high to hinder you from borrowing a high business loan.
Acquiring funds in a very short period of time
The accelerated excess to cash enables you to operate business cost-effectively in comparison to the time-lag between invoice despatch and receipt of monies. Moreover greater flexibility is offered in terms of your own payments: payment to suppliers, staff salary and regular bills.