What is Invoice Financing? 5 Compelling Reasons You Should Go for It

By Per Frennbro in Growth

Are you a small business owner and worried about the working capital for your business? It’s true that contacting all your clients who haven’t paid their invoices is a real headache. So what can you do to get rid of this situation? Invoice factoring financing is the answer! Now you may ask, “What exactly is invoice financing?” It lets you get the working capital that you need in a fast and easy way, by getting paid for your accounts receivable which in essence is your own already worked up capital. This allows you to transform your invoices into instant cash. You don’t have to make any awkward call in order to collect your payment. And you don’t have to worry about when you will get paid. All you invoice problems are taken care of by the factors. What more do you want?

Here are described 5 reasons to go for invoice factoring financing

Fast access to cash

Have you applied for bank loans and feel frustrated for the time the whole process takes? Here comes invoice factoring to your rescue. With invoice factoring, in most cases, you get the money the same day you submit the invoice. Isn’t it great? This way, you get to prevent the risk of customers controlling your cash flow by delaying the payment.

Low factoring fees

Over the years, the fees for accessing factoring services have become dramatically less. Usually, the factoring fees range anywhere between 1% and 4.0% of a business volume. Of course, the fees vary from industry to industry.

Continued growth of your business

If you want to grow your small business, you need a steady cash flow, isn’t it? This is where invoice factoring comes into play. With invoice factoring, you get to focus on getting new customers rather than chasing your debtors. As a business owner, you get to pay your suppliers and avoid supply chain constraints at the same time. Also, you get to extend credit lines to your loyal customers who need credit facilities. All these help you stay ahead of your competitors who are facing funding problems, thereby letting your business grow.

Focus on your core business

Can’t focus on your core business because you are worried about your financial problems? Turn to invoice financing. With it, you will never run out of money to pay your debts. It will let you have peace of mind and put your entire focus on growing your core business as well as customer service. And the best part is that you don’t have to worry about the cash flow.

Get money without taking a new debt

In order to build as well as sustain a small business, debt can be quite an effective tool. However, if your business is new, it can be risky. In case you can’t provide the money in time, you will be in legal trouble. Now, you don’t want that, right? So what can you do to avoid such circumstances? Well, go for invoice financing. This way, you don’t have to rely on an expensive loan, as you will get the badly needed capital for your business from the invoice factoring companies.

Convinced already? So what are you waiting for? Go for invoice financing and always maintain a steady cash flow.

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.

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