Have you ever encountered a problem running your business especially When clients have not Paid For their invoices? Probably yes.
This is the most common problem encountered by businessmen. Most of them spend their time trying to track down payments from the client who have not yet paid the invoices. But guess what? Some give up and end up closing down the business. And so today here is a solution for you. Invoice financing is here to solve this problem by unlocking the cash that is tied invoice and consequently speeding up cash flow for your business. Invoice financing is also referred to as receivable finance or invoice discounting.
How it works
After providing your customers with goods and services, what follows is to invoice them, then the invoice details should be sent to the finance provider or the supplier for the invoice finance for business process. Following the formal business rule that states that the percentage of the product face value should be paid within 48 hours, or any given time frame, ( depending on the business or company rules) by the customer. The payments from you will be received, and you will find that it is less by the service fee detected by the supplier or finance provider.
Invoice financing gives the business owners the way to transform invoices into cash instantly and also helps them to avoid making awkward phone calls towards pushing clients to pay for debts. Apart from settling business owner worries about payments, there are other main importance of invoice financing to a company or an individual business. i.e.
• Company/ Business Gain No Additional Debts
The money issued to a business or a company is neither a Loan or a debt, but just cash in advance . and there will be no additional liability added to your balance sheet.
• Minimal Fee
The cost of financing fee is lower than the normal bank rates, micro-finance among other money lending institutions.
• Helps In Meeting Customers Demand
Invoice financing allows you to continually be in positions to meet your custom product or service demand through instant and fixed lines of credit.
• Office Support
Invoice Finance help support the business or company in pushing for Payments, handling billing, contacting clients about invoices and doing credit checks. This creates time for the staff to work on other issues and thus helping the company save time they used to do this job.
• Helps Customer Service Improvement
Invoice financing helps provide the business owners with a piece of mind to focus on customer service other than worrying about cash-flow.
However, the discovery of the invoice finance plan, most companies and businesses have experienced continuous business improvement and reliable service delivery to its customers, since financial constraints are no longer the obstacles to business success. Choose the invoice finance today and you will experience a great change on your way to success.