Benefits of invoice financing

What is Invoice Financing and What Are Its Benefits?

Published on June 19, 2019June 28, 2019 by livfinfinanceLeave a comment

Invoice financing is the easiest and unique way of gaining capital inflow into businesses.

It is always a necessity for the businesses to keep the required flow of capital into the business to carry out various meaningful activities. Invoice finance is a great way of doing so that ensure a healthy working capital fund. It is one of the best ways to streamline your finances rather than other financing options.

What is invoice financing?

Invoice financing is a lending method that is based on the leading asset of the company looking for finance. The company or business can gain the advantage of getting immediate cash in lieu of their slow paying invoices. With the help of vendor finance, working capital funds can be raised in two ways such as by selling invoices to get an immediate payment or by using the invoices as an asset to secure its credit line.

What are the benefits of invoice financing?

Invoice financing is a method by which businesses can borrow cash from the finance credit companies against the unpaid invoices. It is widely known as short-term borrowing and is a quicker way of increasing the flow of capital. There are amazing benefits of availing invoice finance for an immediate capital gain which can be followed by all types of small and medium enterprises.

Quick cash: Everyone needs a continuous flow of capital to invest in various business activities such as stocking up of inventory, paying business expenses, wages or investing in an upcoming opportunity. Any type of loan needs some time to get sanctioned but invoice financing is the fastest way of availing cash.
Releases locked cash: Invoice financing releases locked cash in unpaid invoices. Invoice financing helps in converting the company’s debtors into liquid cash which can be used in the case of an emergency.
Reduced collection period: Invoice financing is a great way to get rid of the blocked funds that are stuck in long due finances.
Improves cash flow: Improved cash flow can be attained with the help of vendor finance.
No asset as collateral: Invoice financing do not need any collateral against the cash as it is required in other ways of finance options.

Infographic – Benefits of Invoice Financing

Invoice financing is convenient and does not affect business relations.

What are the Benefits of Invoice Financing?

Published on March 12, 2019March 12, 2019 by livfinfinanceLeave a comment

Invoice financing is a very useful method of increasing cash flow to the business. This method has widely used by most of the businesses as it is easier than applying for a financial loan to any financial institution. It does not require any documentation and is easily credited on the basis of unpaid invoices. Easy invoice finance benefits small and medium enterprises to carry out their business activities without any hurdle. This is one of the best methods of earning finance when there is an urgent need. This method of financing is very useful for certain business types as it brings many tangible benefits to the cash flow and helps them to grab any upcoming business opportunity.

What are the benefits of invoice financing?

Invoice finance is a common term used for immediate financing that helps businesses in acquiring quick cash by allowing companies to finance against slow paying invoices. Unpaid invoices can be sold to financing companies to get immediate cash flow. Single invoice finance is also used by business to get cash against a single unpaid invoice. This article briefs about the advantages of invoice financing for businesses.

Speeds up the working capital cycle: The cash locked in the unpaid invoices are given to the factoring companies to get an instant flow of cash. This help businesses in speeding up their working capital cycle as there is no shortage of cash and if any can be easily fulfilled against single invoice finance.
Improved cash flow: invoice financing certainly improves cash flow to businesses as it can be acquired whenever in need without any delay. Most of the lenders can generate cash to the business in 48 hrs maximum.
No need to inform clients: Invoice factoring can be acquired without informing the customers. This is certainly a benefit for the business as it helps the business in keeping its image intact among the clients.
Only pay interest on money that you borrow: SME invoice finance is a method of cost saving as they need to pay interest on only money that is borrowed.

Business expansion and fast recovery of invoices are among the major benefits of invoice financing.

What are the benefits of invoice financing?

Published on November 20, 2018 by livfinfinanceLeave a comment

For businesses, it is very important to get a regular flow of finance. The easy way to add finance to the business is invoice finance. Purchase invoice finance is getting popular due to this easy financing idea. Invoice financing is actually a financing tool that helps you to finance your slow paying invoices from the creditworthy potential customers. You can get finance for your invoice from the finance company by showing them as a collateral. This finance is of much help and helps you in paying your crucial expenses. It is important for those businesses that consistently face slow cash problems. Thus, purchasing invoice is buying of account receivables for cash.

Invoice financing companies are available to offer finance to those who are in need of urgent finance. Invoice financing is generally available within two to three weeks and does not take a long time. Thus, it is a good and easy method for business to purchase finance against their invoice. Companies that offer invoice finance generally purchase invoice at a discount and then move forward to collect the payment from the applicable debtors. This method of business financing offers many benefits such as:

Read Also: What is Purchase Invoice Financing and How Does it Work?

Easy and fast cash:

The method is absolutely suitable for getting an easy and fast cash. Maintaining a continuous and consistent cash flow is the main requirement of every business. Business needs to regularly pay for its expenses in the form of wages, adding new inventory etc. Thus, invoice financing is a great method to deal with cash problems.

Business growth:

Invoice financing helps in carrying out all the business transaction smoothly. Business can also invest in a big opportunity by purchasing invoice finance. Thus, it helps in business expansion and growth.

Affordable factoring fees:

The financing fees are not very high and business can easily think of purchasing it. In the last many years the fees of invoice financing have not increased and offered a great option of purchase invoice finance to businesses.

Getting invoice finance is a great idea for every business as it has certainly reduced the risk of late payments from the customers and raising of bad debts that can injure the business.

Read Also: How Invoice Financing works and how to take benefit from it?