Business View Magazine | June 2022

19 BUSINESS VIEW MAGAZINE VOLUME 9, ISSUE 6 A re you looking for a way to get your business growing again? Perhaps you have been turned down for a loan, or don’t want to take on more debt. If this is the case, invoice financing may be the answer for you. Invoice financing is a type of short-term lending that can help businesses grow by allowing them to turn their unpaid invoices into cash. What is invoice finance and how does it work? Invoice finance is a type of funding that allows businesses to receive cash upfront for their outstanding invoices. This can be a valuable source of working capital, as it allows businesses to access the funds they are owed immediately, rather than waiting for their customers to pay. How invoice finance works is relatively simple. The business contacts an invoice financier and provides them with details of the invoices they wish to finance. The financier then pays the business an agreed percentage of the value of the invoices upfront, Less any fees charged by the financier. Once the customer pays the invoice in full, minus any discounts or early payment terms included in the finance agreement, the remaining balance is paid over to the business by the financier. Invoice finance can be a flexible solution as businesses can choose to finance selected invoices or all of them, and they are not usually tied in to long-term contracts. The amount of funding available also tends to increase as a business grows and raises more invoices. The benefits of invoice finance for small businesses Invoice financing is a great way for small businesses to improve their cash flow. When a business sells a product or service, it often takes time for the customer to pay their invoice. This can leave the business with a shortage of cash, which can be difficult to manage. Invoice finance allows businesses to borrow money against the value of their unpaid invoices. Types of Invoice Finance: How They Can Help Your Business Grow!