Invoicing Made Easy

Often, in the day-to-day business of a business dealing with the number of daily transactions, it is necessary to have a remote invoice immediately and, therefore, inaccessible at the time, which poses productivity problems. and concerns that may directly or indirectly affect the overall performance of a company. To overcome this problem, the concept of electronic invoicing is catching up. Electronic invoicing simply refers to importing a virtual invoice saved in PDF format or any other compatible document directly into the billing software, so that it can be presented as a useful reference when necessary.

The main advantage of this type of system is the ease of access and convenience it offers by offering its customers a wide range of payment types. Thanks to electronic invoicing, customers who are quite rare at the moment do not only have the mail at their convenience but they can also monitor their banking activity digitally. By using dedicated billing software, you can also automatically configure the system to send reminders to customers about the due date or any update/reminder, so that customers get the most out of it. Benefits helping them avoid late payments.

With the use of invoicing software and the electronic invoicing , there is no longer response time for sending invoices to the courier for delivery, pending payments by mail or queued at the bank. You can send electronic invoices securely to your customer’s email identification with one click or electronically transfer the payment to your account. E-invoicing allows you to process multiple invoices in a fraction of the time required to complete an invoice, which, in addition to saving you time, means that your donation to nature, which is green, reduces costs. We are roofing experts. Whether you’re replacing an old roof or building a new one, fixing fireplaces, we’ve got a wider range of skills to meet your daily roofing and chimney needs. Repairs to make sure your roof and, therefore, always be safe.

One of the strengths of e-invoicing is that shipping costs are reduced to zero, significantly increasing activity. 

Online invoicing is one of the many methods of cash flow finance for business you can use to reduce costs and make your business more efficient and effective. In the current market, autonomous companies and small businesses are taking advantage of the benefits of online billing. They discovered that bills sent online are paid faster and look more professional. This help to Avoid Overdue Accounts.

Invoice Finance a Quick Guide For Small Businesses

Although there are many ways to manage a company’s cash flow and, of course, it’s essential to master them if you want to stay afloat, but all the tips to keep it cash become redundant if you discover. that you are already in the middle of cash flow. fight to maintain a healthy cash flow.

When your small business is experiencing a liquidity crisis, you will probably find it hard to find a lifebuoy and many offers will be offered because liquidity solutions are the burden of many financial companies.

One of the most discussed topics will be billing funding, a safe and healthy term covering several financing options. You can also listen to it in the form of cash flow financing, accounts receivable financing, debtor financing or sales financing, but what is it?

In simple terms, Invoice Finance is a means by which a company can use its debtor portfolio as collateral and, in general, release up to 85% of the cash associated with waiting for the money owed to the company for outstanding debts. Many industries rely on this type of commercial financings, such as agencies providing temporary staff, because their usual practices involve unusual cash flow situations, as they will have to pay a large number of people a week or a day, but expect to pay staff supply bills for about a month.

The term Invoice Financing actually covers three main types of financial solutions and while they all have the same objective of releasing a company’s cash and all use unpaid invoices as collateral, they all operate in a subtle way but fundamentally different.

Factoring

With factoring, a financial company intervenes and assumes the administration of the sales book and the credit control of a company. In essence, invoices are “bought” at a high percentage of their value to release money from the company and the factoring company then sues the debtors in the usual way. Many small businesses prefer this because they often do not have the facilities to manage their own credit checks.

Invoice Discounting

In addition to the fact that it releases a similar amount into the business with unpaid invoices used as collateral, but that is usually a confidential service without customers knowing that the financing is being used. Unlike factoring, a company will maintain its credit control management. Large companies with credit control services or companies that do not feel comfortable with customers know that their financial arrangements often opt for discounted invoices instead of factoring.

Asset-Based Lending

When, as with the other two previous loan options, cash is released into overdue accounts, asset-based loans release money into all potential assets of a business. In general, this can include goods, equipment, machinery, inventory and even the brand of the company if they have enough value, as well as the usual bills. Clearly, this is a way to raise much larger sums and is more often used when a single event has triggered a cash flow crisis or to finance an expensive undertaking, such as a merger or acquisition.

Simple Tips For Choosing The Right Debtor Financing Company

Debt is a serious problem in many countries. Many families face the temptation to settle accounts in the middle of the debt of several creditors. One of the best solutions to solve debt problems is to carry out debt consolidation. This procedure can be handled in different ways. To find the best solution for consolidation, it is recommended that the debtor consult a debtor financing company. However, the debtor must be very careful when choosing the right Debtor Financing Company. The following seven guidelines must be followed to ensure that a person is dealing with an accredited organization:


Compare companies

The individual does not have to work with the first company he finds. It is always best to consult at least three organizations and compare products, services and prices.

Check the sincerity.

A truly professional organization will want to do more than consolidate its debt for the consumer. A good company will want to educate the consumer on how to prevent future debt problems and financial failures.

Conduct the investigation.

You should always conduct an investigation before dealing with a debt consolidation company. It is a good idea to read the information on the company’s website and consult others who have worked with the same company. An agreement or program should never be concluded without thoroughly investigating the organization.

Talk with the representatives.

One of the best ways to find information about a debt consolidation company is to call this company. The debtor must ask questions about the services offered by the company. Representatives must always present a kind and helpful person. Evasive responses may indicate that the company is not reliable.

The Fair Trade Office

The consumer must visit the website of the Fair Trade Office. Here you will find useful information and assistance on how to find a legitimate consolidation company.

Consider the monthly expenses.

Whichever company the consumer chooses to work with, the monthly rates will be involved. A good tactic is for the consumer to enter their monthly expenses to see how much additional money they can allocate to a consolidation company. This way, he or she can work with the budget.

Stay in the loop

The best debt consolidation will remain in close contact with the debtor and inform him about his procedures. The representative should never leave the debtor in the dark. The consumer must ensure that their representative is available at all times for questions and concerns.

Following these seven tips, a debtor should be able to find the best debt consolidation company for him. Debt problems will disappear more quickly if the customer chooses the right equipment.

Everything you need to know about Invoice Finance

There are a few benefits that can be picked up when a company chooses to invoice finance. A business that deals in the sale of products or services to different businesses will receive the advantage of enhanced cash flow by utilizing an invoice finance service.

What Does Invoice Finance Means?

Essentially, to invoice finance means to sell or assign your outstanding invoices to an cash flow finance company. This company, as a rule, will give you instant access to a percentage of the total amount of the unpaid invoices assigned to them, normally from 70-90% of the value of approved invoices. By and large, they may likewise assume liability for invoicing, chasing and collecting owed invoices and additionally acknowledge a percentage of the loss on unpaid invoices.

Benefits of Invoice Finance 

Cash Flow Increase

Approaching these funds significantly increment the cash flow inside your company. Cash on hand for expanded production, savings by a method for discounts on company expenses, decrease or even elimination of costs of doing business, and enhanced open doors for business loans.

More Sales 

By utilizing an invoice finance service there are no waiting 30-45 days for individuals who pay on time and much longer for late payments on invoices. That cash on hand can be more promptly available for production, creating an immediate availability for more sales.

The advantage of Discounted Payments 

Another zone the correct business can increase more prominent cash flow from utilizing invoice finance is in taking advantage of discounted payments of operational expense. Many companies offer discounts of as much as 10% if their invoices are paid on receipt or inside a specific time frame.

Better Terms From Suppliers 

With invoice finance, you have cash on hand to pay your bills sooner, as opposed to holding up until the point that your customer pays you for your item or service. Expanded cash flow likewise builds your companies buy power, improving it conceivable to negotiate terms or discounts from providers. The savings in these two areas alone will, by and large, outweigh the charge from the invoice finance service.

Different Benefits

There is a different operational expense that can be reduced or even eliminated when utilizing invoice finance, for instance, administration costs, stationery, and office hardware. While including the cost of employing an accounting clerk, their salary as well as company benefits, it’s anything but difficult to see some extraordinary advantages to utilizing an invoice finance service.

Invoice finance can be especially helpful to a business in the start-up phase. Most lending institutions have strict rules on lending to ‘new businesses’. A bank or moneylender will just think about a small bit of outstanding (unpaid) invoices owed, frequently just 40% of the total amount of outstanding invoices, while administering a business advance. By invoice financing, your record indicates cash on hand instead of a large amount tied up in outstanding invoices.

Disadvantages of Invoice Finance

There are a few disadvantages to utilizing an invoice finance service. The products or service your company supplies can hugely affect whether your company should utilize invoice finance. Businesses giving recurring services or item arranges are great candidates, while invoices for one-time requests may think that its difficult to acquire this sort of funding.

These companies want to know the debtor and their reputation in paying obligations previously tolerating invoices owed by that debtor. Another disadvantage would be if the markup sale cost of the products or service provided was not exactly the amount of the invoice finance charge.

For the correct business consolidating the enhanced cash flow with a sensible net revenue alongside expanded sales arranges the business is in a situation to expand and the expense to invoice finance can without much of a stretch be caught up in expanded profitability.

Invoice Finance for Small Businesses

Invoice financing, which is also referred to as accounts receivable financing lets business owners finance any outstanding invoices in their business. Companies that deal with invoice financing simply advance you cash and hold outstanding invoices, rather unpaid invoices as collateral. This, in turn, gives you the perfect opportunity to invest back into your business. In invoice financing, you have the opportunity to get an advance of up to 85% of your invoices value and then get the remaining 15% later on depending on the agreement between you and the invoice financing party.

However, there are other financing companies that can give you an advance of up to 100% the value of your unpaid invoices. Most repayments of the advance are set for when the customer or client clears their invoice payment. The most outstanding fact about invoice financing is that you can get the advance you request within a very short period of time. Most of the providers have you sorted within 24 hours.

Advantages of invoice financing for small businesses:

  • You don’t need to wait until the invoice payment is done to obtain cash.
  • Customer invoices are all you need as collateral.
  • The advances your business gets highly rely on the invoiced business credit.

Disadvantages associated with invoice financing:

  • The interest paid; or rather the service fee can be much higher as compared to traditional or typical financing.
  • The fee charged also depends on the period of time before the invoice payment is done.

Who is eligible for invoice financing?

This is pretty simple. As long as a business is based on a business-to-business model and it does currently have pending receivables, you are eligible to apply for invoice financing.

Basically, the deal is;

  1. These financing providers are not keen on your time, profitability or revenue in your business.
  2. As a matter of fact, it is the invoices you provide that act as collateral of the loan requested. As long as all the invoices check out and make sense, the financing companies really don’t get into the details of your business.
  3. Generally, the maximum amount of loan that your business can qualify for is based on the total value of the invoices you provide. It is important that you also remember that your creditworthiness is also one of the key factors that determine the amount of money you can be loaned by the financing company.
  4. You also need to remember that there are some other invoice financing companies that also go through your credit report before giving you the advance.

As discussed above, invoice financing is a kind of loan from the lenders. From a technical point of view, this can be bolded as the main difference between invoice financing and invoice factoring. In this technique of funding small businesses, the business owner doesn’t receive an advance but actually sells outstanding invoices to a factoring company at a discount. In return, the company gives you the cash right away. Later on, the company comes and collects the cash from your clients or customers. The window before the factoring company collects the cash from your customers depends on the agreement set. However, typically this period ranges from 30 to 90 days.

Use Capital Released Your Invoice Financing to Improve Your Business

Work ON Your Business not IN Your Business

This is an age old saying that many business owners would have heard but many are guilty of not following.

Sometimes it can be hard to know the difference or sometimes when a business is “your baby” it can be difficult to take a step back and let others do the small things.

 

What is working ON my business?

  • Creating business plans
  • Creating marketing plans
  • Preparation for sale
  • Preparation for generational transition or retirement
  • Working on ways to streamline production
  • Looking at ways to reduce costs
  • Bringing on new clients
  • Negotiating with suppliers
  • Expanding into new regions
  • Employing new staff

 

 

What is working IN my business?

  • Working on the production line
  • Dealing with existing clients
  • Doing time consuming tasks that you could train others to do such as ordering stock
  • Making sales in existing target markets

 

The major difference between these two categories is the fact that the tasks you are doing within your business are tasks that you could train others to do for you. In contrast, the tasks in the “working ON your business” category are much bigger picture and things that only you as the owner of the business can make decisions about.

Employ a Good Manager

The best way to make sure you are working ON your business instead of IN it is to employ good managers.

A good manager will report to you frequently and come to you with issues that they feel are worth your time, but they will not come to you with issues that they can solve themselves.

A good manager is someone you can trust to uphold standards you have set. Obviously, it is also helpful to set targets for managers to meet so that they are accountable to you and motivated to inspire their team. This will free up your time to focus on the bigger picture and therefore grow the business.

This takes capital but should pay dividends. Invoice Factoring can help you release the capital you currently have tied up in debtors, in unpaid sales invoices.

Move Your Business Online Funded by Invoice Factoring

Take your Sales and Marketing On-Line

We live in a world where if you are not online as a business you are missing out on a huge percentage of the population.

However, it is not simply enough to have a website that directs a customer to call or visit you. People want to be able to fill out applications or order and shop for your products or services online. If you have an online presence it must be maintained and actually useful for your customers. If it is not, they will go to competitors who make it easier for them. Keep your website updated, if you change your phone number, make sure your website is updated because otherwise, you are giving away business that could have easily been yours.

It’s All Happening Online

It is also important to market your business online. They say if you aren’t on the first page of a Google search you won’t be found because often people will not look beyond page one. If you don’t show up on page one of Google, do something about it! Search engine optimisation is a huge industry these days so if you do not know how to do something, start learning or employ someone to do it for you.

 

Online marketing can be some of the most specific out there so it is important you understand how to find and target your customer and if this is through Google ads or Facebook ads. Even if you don’t think that your target market is particularly active online you would be surprised at just how many more people you can reach through this method.

 

All this requires capital if it’s going to be done correctly and effectively. Many businesses don’t or can’t do it because they think they lack the capital and therefore they lack the focus.

“ I don’t have sufficient capital so no use thinking about it”

Debtor finance or invoice factoring can change all that, it can change the way you think about your business and the way you plan the growth in your business.

 

 

 

 

 

 

 

 

 

 

 

 

It is also important to market your business online. They say if you aren’t on the first page of a Google search you won’t be found because often people will not look beyond page one. If you don’t show up on page one of Google, do something about it! Search engine optimisation is a huge industry these days so if you do not know how to do something, start learning or employ someone to do it for you.

 

Online marketing can be some of the most specific out there so it is important you understand how to find and target your customer and if this is through Google ads or Facebook ads. Even if you don’t think that your target market is particularly active online you would be surprised at just how many more people you can reach through this method.

 

All this requires capital if it’s going to be done correctly and effectively. Many businesses don’t or can’t do it because they think they lack the capital and therefore they lack the focus.

“ I don’t have sufficient capital so no use thinking about it”

Debtor finance or invoice factoring can change all that, it can change the way you think about your business and the way you plan the growth in your business.

Invoice Finance and Factoring to Fund Expansion

Expand in Different Products Services and Regions

In any business it is difficult to stay relevant if all you offer is one product. However ground breaking the product might be when you first enter the market; there will soon be copycats and competitors that show themselves and if you are not keeping current you will lose out to these new entrants.

A tactic to stay relevant may be to offer complementary services or products. If you offer everything that your customer needs why would they go anywhere else?

As an Example

For example, if you own a computer shop, you could safely assume that your customers will also want to buy printers, external hard drives and keyboards. You could also assume that they will want somewhere to service or fix their computer when something goes wrong. Perhaps you could offer customers specialist training on high level software or offer older customers lessons on the basics of using a computer.

Telephone systems are becoming more and more hi tech and may have a synergy. Photocopiers and other office technology may also have relevance depending on your target market and location.  The point is that you offer everything your customer needs and the more you offer the more convenient you become. If you are considered a convenient option for your customer, then you can charge a premium for this and a customer will happily pay it.

Be Current and Efficient

You should always be looking for a point of difference from your competitors and by continually creating new products you are sure to do this.

Contact Nova Cash Flow Finance to learn more.

Debtor Finance or Factoring can Finance Your Plant and Machinery

Purchase Equipment or Machinery to Streamline Your Workflow

Purchasing new equipment and/or software for a workplace can sometimes be a huge lump sum cost for a business and a drain on working capital. Nevertheless, it is important to realise that by having the most up to date software and machinery you are reducing cost and saving time. You are also remaining current and up to date.

Common Mistakes

A common mistake that a lot of business make is holding on to an older piece of equipment that is constantly breaking down. Not only are you paying money repeatedly to repair this old equipment or have new parts shipped in, but you are causing delays in the production line or the distribution chain which may result in a loss of customers who are sick tired of experiencing the same delays. They will go to a competitor that does have the latest, the best and the most reliable.

In addition, you are also likely to be increasing labour cost due to down time when plant and equipment is out of action. Sometimes the task may need to be completed manually or in some inefficient and costly way.

Update your plant and equipment

It is also beneficial to simply update outdated software because clients value suppliers that use the latest technology. For example, think about how inconvenient it is when you come across a cash-only establishment in this day and age.

Across the board, it is in your best interest to keep software and machinery up to date, it will save you money in the long run by streamlining processes and keeping customers happy

 

Use Debtor Finance to Fund an increase in Sales or Production Staff

Employ More Sales Staff or More Production Staff

Often when small businesses start gaining momentum with marketing, log jams can be created in their sales funnel. This means that you are unable to keep up with the number of new inquiries you are attracting. If you don’t respond to an enquiry you will lose the opportunity, there are plenty of competitors out there ready to eat your lunch! Often, if you are attempting to do everything yourself as an owner-operator you can find yourself wasting time with dead-end leads and missing out on potential clients because you have taken too long to get back to them.

As a business person it is important to recognise that you cannot do everything yourself and even if you cannot afford to employ someone on a full-time basis it may be beneficial to look into outsourcing sales tasks. Outsourcing offers a plethora of benefits such as scalability, reduced costs, and trained staff.

Either way, having more working capital will allow you to take up one of these alternatives which should result in business growth.

Employ a BDM

Many businesses also find it helpful to employ the services of a BDM (business development manager). The person in this role will take care of sales by maintaining and growing existing clients as well as following up on interested parties, in addition to making cold calls and chasing new business. You will be updated on their progress, but you are able to use your time to focus on the bigger picture.

You can also add manpower and staffing to your production or distribution department, so you give better service to your customer.