There are many reputable companies that can help you if you require quality invoice finance services. Invoice financing allows you to get access to money you’re owed from unpaid invoices. Obtaining this money early can help you keep your company running. Sometimes, it’s simply not practical to wait any longer for an invoice to be paid, but invoice financing services can address this issue. To find the right company, why not talk to three or four services so you can reach an informed decision?
Growing in popularity
More and more companies are raising the money they need via invoice financing. This form of borrowing involves using invoices arising from work, services and goods you have provided to another business. There are two forms of invoice financing: invoice factoring and discounting. In factoring, you sell your invoice to a company for around 90% of its value, with the company chasing the debtor themselves. With discounting, you borrow most of the invoice’s value from the company and chase the payment up yourself. Once the invoice is settled, you pay the financing company what you owe them.
Do you need to retain control
With discounting, you retain full control of credit management. The company owing you the money will never know you have been working with an invoice financing team, so good business relationships can be maintained. There are many trustworthy companies on the market offering this kind of service. Using an invoice finance company can be the difference between your company prospering and faltering. If your invoice is long overdue, or if you’re not worried about the company knowing you have consulted an invoice finance service, invoice factoring could be for you. If waiting for an invoice to be paid simply isn’t an option and you need to access money as soon as possible, invoice financing could be the solution.