As an investor, you may know that there are a number of investment products that are not that appealing. They are either too unpredictable such as individual stocks or grow too slowly such as term deposits or government bonds. Would you like to try some investment that has comparatively certain growth and is observable? Then give invoice financing or factoring a try. This field of investment is quickly expanding and people are getting to know about the advantages it offers.
So, what exactly is this invoice financing? Well, the main idea of invoice financing is to help businesses in managing their cash flow. Let’s make it clear to you with an example. Suppose a company that produce and sell products or services that invoices that the customer that buys the goods/services. Factoring allows the selling company to sell the invoices immediately to investors with a small discount. The selling company gets an advantage. It doesn’t have to wait until the customer to pays the bill.
Now you may ask, “What do I get as an investor?” You get a chance to invest in short-term debt, especially in the ranges of one to two months. This allows for a quicker turnover with returns that are similar to other P2P (Peer to Peer) investments. Also, as in the above example, the buyer is a big organization with a good payment history, the risk that is involved here is quite low.
The process of investing in invoice financing is much like investing in other P2P investments. In order to make bids, you can set up automatic investment settings. The best thing that you can do to assess the reliability of the business is to manually look into the information that has been provided about the business. And at BETALD, we let you do all these!
Can invoice financing help in diversifying your portfolio? The answer is “Yes”. And this becomes especially true when it comes to P2P investments. As an investor, you get to avail the following benefits that factoring offers –
- Basically short-term investments
- Opportunity to invest in the success of small and medium businesses
- Chance to explore a new field of investment and make profit
Not many people are aware of invoice factoring business. However, the factoring industry is very large as well as longstanding. If you want to earn some interest on your money, make sure to take your time and do your own research. Also, invest in companies that have a good history of making payments on time and that is reliable. In order to check if the factoring company is reliable, you can even conduct an interview with the management of the company. Invest only if you think that you can have a positive return and try to place your bets on sure winners.
Do you want to invest in the factoring industry but not sure where to start? Come to us. We, at BETALD offer a platform where you can place your bid on unpaid invoices, get connected with a number of small businesses and make money. So what are you waiting for? Open an account with us today!