What is Invoice financing?
Invoice financing is a way for your business to get a quick injection of cash by unlocking money caught up in your invoices. It works by sending invoices to an invoice finance provider who will then pay a percentage of these costs upfront. This means your business is essentially borrowing money that is already owed to the business. In some cases payment chasing then becomes the responsibility of the invoice finance provider or it can remain with your company. Unlike other financing options, invoice financing does not involve monthly payments nor does it come with a risk of debt.
How does invoice financing work?
Invoice financing uses your customers unpaid invoices to represent money that will be paid to your business. Lenders will then advance these payments and sometimes even take over responsibility of payment chasing. Invoice financing differs from a loan because you are fast tracking the access to money that your business does already own. This low risk financing option comes without the worry of debt which is why it is a very appealing and beneficial option for businesses of all sizes.
What is invoice financing good for?
Late invoice payments are a notorious problem for businesses. If your business struggles with this then invoice financing is a great option to help solve cash flow issues. Quicker cash injection can help you focus on growth and choosing a lender who also takes on the responsibility of the repayment chasing can free up a lot of your time. Invoice financing comes with less risk than other loans because you are accessing money that is already yours. Invoice financing is suitable for companies needing to increase their cash flow without taking on more debt or liabilities.
Why should I consider invoice financing?
Invoice financing can be a really effective and low risk way of allowing your business to fund its growth without taking on more debt or liabilities. Invoice financing is not taking on more debt or payments unlike other financing options. Parkins Finance are here to help businesses in Scotland decide if and how you can use financing options to benefit your finances. Invoice financing is a simple and reliable option for a lot of companies in Scotland and the experts at Parkins Finance are here to advise you on how this can work for you. Our expert financial brokers will work with you to find out what is best for your individual situation and needs.