Do you have invoices outstanding? Need to boost your cash flow by getting hold of money owed to you as soon as possible? Then you may well wish to approach an invoice financing service. Invoice financing firms can help you unlock the money in unpaid invoices, whether the bills are overdue or you simply can’t wait until the due date. There are two main forms of invoicing financing – these are invoice factoring and discounting. Both types of financing may prove to be indispensable to your company.
A valued form of raising funds
Invoice discounting may the best option the invoice isn’t late but you do need to get the money now. With discounting, a company lends you around 85-90% of the money you’re owed. You remain responsible for chasing it up and settle the bill when it is paid. The company never knows you’ve used an invoice financing lender. With invoice factoring, you essentially sell your invoice to a firm who then chases it up themselves. This method can be slightly more expensive but it can come in very useful if you have struggled to get your client to pay and aren’t as concerned about the nurturing a great business relationship with them. Discounting may be right for you if you don’t want to risk damaging your relationship with a client but do need to obtain money quickly.
Find the right company
There are many reputable companies on the market that can help you obtain money owed to you by your business customers. If you’re not sure which company to opt for, you may well wish to consider asking around for recommendations. A growing number of companies are asking invoice financing companies for help when they need to get hold of money owed for their products and services quickly.