Invoice finance – how it could help your business

Posted on Mar 3 2010 - 9:13pm by Peter Millikin


Tough as it is making a sale, it’s even tougher now getting paid on time and in full. How can invoice finance help your business through these difficult times?

Times are challenging, businesses the length and breadth of the country have knuckled down and worked extra hard to keep costs down and efficiency high. You’ve fulfilled your side of the business deal, cut costs to the bone and passed these savings onto your customers in the form of incentives and discounts. You’ve done anything to make the decision to use your company that bit easier.

Now what about your customers? Are they matching your commitment to the deal? Are they all paying you on time and in full? It might seem unfair but these days it’s not uncommon for companies to delay payments until the very last minute. You may even be faced with a situation where a customer that owes you money goes bust.

What if you have money trapped in unpaid invoices and delayed payments? Of course you need that cash to operate, nobody can survive for long without profits and working capital that allow you to run your company properly. Who can you turn to?

Have you considered the benefits of invoice finance?

When it comes to invoice finance and factoring UK companies are in a fortunate position. Options exist that can help a small business use the value of the outstanding invoices on its sales ledger either as the basis of an invoice discounting loan (usually in the region of 85% of the invoice value). Alternatively the unpaid invoices can be sold on in a deal called invoice factoring. In either case funds will be released by the invoice finance company allowing you to put the cash to quick and effective use.

There are many scenarios other than trying to stay afloat where access to quick capital can be of use. For example invoice discounting might be used to finance growth, for restructuring, or to pay for management buy-outs or commercial acquisitions.

Companeo helps SME’s decision makers, self-employed professionals and retailers to find products like Invoice Finance.
Additionally, large associations and local communities can use Companeo to help find services like Invoice Discounting, managing such activities free of charge.

Article Source: Author: Companeo

Read about the Author

Peter has received many accreditation’s including many from the Times Online. As founder of You Could Save (2005) and What Stationers (2007) Peter regularly helps consumers and national organisation ‘save money’. He believes that the only successful way to bring people together online is to provide an open marketplace where people can all work together in a friendly, unbiased environment. You can contact Peter Millikin either through his Google+ account or via his websites.

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1 Comment so far. Feel free to join this conversation.

  1. Glenn Blackman March 4, 2010 at 4:28 pm -

    Our recent research suggests that the task of chasing those upaid invoices can take the average SME approximately 80 hours each month. That is time and resource that can also be saved if the business uses a factoring service where credit control is provided as an outsourced function as part of the facility.

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