THE SECRET to small business success: 5 Advantages of using invoice financing
1. Feel Comfortable About Full-Sized Projects
Small businesses carry a lot of cost on big jobs and payment is frequently slow when there’s a big corporate involved. That’s a bad combination. Invoice financing allows businesses to take on potentially rewarding contracts without getting stretched too thin, by getting up to 85% of your outstanding invoices paid upfront instead of waiting 60+ days all the time.
2. Only Make Repayments When Your Money Comes In
Invoice finance is not paid back until the original invoice is settled by your debtor. Businesses who use these services don’t have to make fixed-term repayments nor do they pay weekly or monthly interest charges. That’s great for working capital and your cash flow!
3. Select How Much Money You Need, and How Often
Businesses can choose how much upfront cash they require when using tim.’s invoice financing facilities. In the past, they had to sell their entire accounts receivables ledger, but now they can stay in control of their finances by only offering up those invoices they wish in order to get the upfront money required. Also, because invoice financing is flexible businesses can choose to come and go as they wish, with no lock-in contracts; no upfront fees and no personal guarantees required.
4. Money’s Available Within 24 hours
Businesses can get the funding they require within a day or two of applying and providing the information required. That allows you and your clients to act fast and fix cash flow issues on the fly.
5. Funding is Based on Your Sales
The amount of funding your business can access is all based on your current and future sales. Unlike business loans, invoice finance is not dependent on your past trading, nor your the debt on your balance sheet. The more your sell and the more you invoice the more cash flow funding you can access via invoice finance. All of this with no property required as security!