Video: How Invoice Finance Works
- December 20, 2023
- Posted by: Paul Ransley
- Category: Blog
This short video describes how single invoice finance works and how it can help to relieve the stress caused by poor cash flow and provide a foundation on which to build a stronger business without having to commit to a long-term loan contract.
Quick & Simple
If you want a quick and simple solution to a temporary lack of working capital then single invoice finance might be what you are looking for.
It is especially good:
- If you need funds right now
- If you don’t want to be locked into a long-term financing contract.
- If you don’t want to use your home as security for a loan.
- If you don’t want to pay a laundry list of fees.
How does it work?
We will buy an invoice that you have issued to a customer but which hasn’t yet been paid You’ll receive cash for that invoice in exchange for a small discount.
How much will it cost?
It’s probably less than you would offer that customer to pay you early – which you don’t want to do in case it becomes an on going expectation.
- Your customer must be another business
- The invoice should be within terms.
- The customer should validate the payment
This flexible financing alternative allows businesses to avoid the complexities and fees associated with traditional financing options, ensuring a streamlined and efficient financial solution.
With the ability to swiftly convert unpaid invoices into working capital, single invoice finance offers an attractive option for businesses seeking immediate liquidity without compromising long-term financial stability. By understanding the benefits and considerations of this financing option, businesses can make informed decisions to effectively manage their cash flow and sustain their operations.”