There are a number of businesses out there, the customers of which don’t pay for their goods and services 30 to 90 days after the issue of the invoices. In fact, this can sometimes be 180 days afterward. This gap in funding can be considered as one of the biggest challenges that the small and medium enterprises (SMEs) face. A significant amount of cash flow issue can be the result of late payment of invoices. SMEs may find it difficult to pay their staff, cover their business expenses and grow their business to fulfill larger contracts or orders.
This is where invoice financing comes into the picture as a solution. It is an extremely useful solution that enables the companies to sell their invoices to an invoice financing company in exchange for immediate cash. In this whole process, the ownership of the invoices gets transferred to the invoice financing company and the latter gets paid by the end customers after 30-180 days.
Invoice finance as a solution
For small businesses, invoice financing is quite straightforward. Suppose your customers cannot pay off the £100,000 invoice that is issued to them for a maximum of 90 days. But you may need the money in 2 weeks so that you can pay salary to your employees and carry out your business expenses. As a small business, you may seek to get a business loan in order to cover this deficiency of money. Whether you are applying for a secured or an unsecured loan, the process can take a lot of time. Also, you may need to secure some form of guarantee if you want to qualify. While this can be okay for large creditworthy companies, it can actually be quite hard for small companies to get qualified. In that case, you can opt for invoice finance. Yes, small companies can also get invoice financing nowadays!
The invoice financing company will buy your invoices and will advance you up to 85% of the total amount. We, at BETALD, offer up to 99% of the total value of the invoice. You will get the remaining 1% minus the finance fee once the customer has paid up. On our BETALD platform, we use state-of-the-art technology to help SMEs finance even the smallest of their invoices.
Quick cash flow with BETALD
We understand that the assets of your company are valuable to you and that you need easy and quick service. So here we are with our invoice financing service. Make use of our BETALD platform for no additional charge and save your money and time.
About the Author: Per Frennbro is the CEO of BETALD, which offers high speed, low cost invoice financing for small businesses. As a serial entrepreneur, Per focuses on helping both small and medium sized businesses take control of their cash flow. Visit https://www.betald.com and see how you can turn your invoices into working capital to help your business prosper.