Factoring, Debtor Finance, Cash Flow Finance, Invoice Finance… It comes with a different title depending on who you talk to, but it achieves the same outcome for SMEs - helping SMEs with their cash flow.
Invoice Finance allows an SME to access funds tied up in the Accounts Receivables owed to that business a lot sooner than if they waited for their customer to pay.
Really an invoice is an IOU from someone that a business has supplied goods or services to. Until that invoice is paid you have done all that work for free. Quite often that invoice will not be paid for 30 days, 60 days or even longer. Cash is king to a business owner; without good steady cash flow a business simply cannot survive, let alone grow. This is where Invoice Finance can help. An invoice financier can turn this IOU into the cash needed to continue running and growing a business. This is usually done within 24 hours, not three months.
Another huge plus for an SME owner is that invoice financiers do not require property security. A bank generally will not talk to you if you do not have property to offer as security for a facillity. Not having the family home tied up as collateral for the business debt allows a business owner to sleep a little better at night.
Many invoice financiers go that one step further in their offering to an SME where they can actually assist that business with their collection activity, including making follow up calls to customers, issuing monthly statements and all cash receipts and allocations. A business owner is simultaneously the Sales, Marketing, Operations, HR and Accounts department. That’s why this additional service can be a big help in running their business more efficiently, taking one more worry off of their minds. If a business provides completed goods or services on a B2B basis and issues invoices on credit terms then Invoice Finance could very well be the cashflow solution they have been looking for.
At FactorONE we provide prompt approvals as well as a refreshingly flexible and engaged service offering. If your payables are behind or you want to grow your business don’t hesitate to contact us.
