Ins and outs of financial invoices
When business considers their financial options, there is a tendency to concentrate on popular products that may not always be the best solution. What will you consider for your company? Castness? Corporate credit card? Loan? Financial Invoice? I hope that the latter will be at the bottom of any list, if it even to start. Finance Invoice is a try and tested and, thus, surprising that so many businesses ignore it.
It’s hard to find the time at which finance is not discussed in the press, on TV or on the radio. But do you know what financial invoices if you hear it talked about in one of these media? If not, you can find the following short guidelines for Whats, IFS and but also the Finance Invoice helps Demysify this business financial form.
Invoice Finance, more specifically known as discount invoices or factoring, is an alternative financial product that often gets a fair share of a bad press on the market. This seemingly useful cash flow product still brings stigma into the last range for a company on the verge of their death, but is this really a reflection? No, is the answer.
Finance invoices can often be a product of choice for many companies from new companies starting to form multi-national companies, although in general are moderate to large companies that get the most benefits. In simple terms, invoice financing allows business to receive a large percentage, usually 80-85% of money payable to them within 24 hours after filing an invoice. The invoice financing company then sends a further percentage of the invoice, usually 10-15%, after the invoice has been resolved.
The benefits carried by this product area:
The first and most obvious benefits are access to cash. The gate of flooding opportunities can be well and truly open with increasing business cash flows. Many companies use increased financial liquidity to pay for suppliers early, buy shares at attractive prices and bridge the gap between the work completed and the date of payment of their invoices.
All companies provide their clients with financial invoices also provide access to invaluable information about client customers, allowing them to make decisions based on information about the level of trade and credit.
Bad debt protection
Many invoice investors offer poor debt protection, which offers client financial protection against one of their customers.
This benefit only comes when you operate the factoring facility that gives you the opportunity to allow your factor to do a collection on your behalf. This frees up time needed and will usually be half of the cost of hiring credit controllers.
Next time you think of your business financial position, it’s also to consider all options than just plump for the most obvious solutions. Why not explore all options including the Finance Invoice? Even take further steps and think outside the box by considering new and innovative alternative financial options such as funding crowds, peer to peer lending or even timesheet finance.