How can Invoice Finance help a growing business?
When a business starts to experience growth, it may cause a strain on their cash flow. As the level of work increases, they will also see an increase in costs, such as wages and raw materials. This can leave a business short of cash whilst they are waiting for payment from their customers. With Invoice Finance, they can access that cash sooner, and put their cash flow at ease.
If a business takes on a specific new contract or customer on long payment terms, they will feel the strain on cash flow instantly. They may need to purchase materials, pay wages or other running costs for the business. This is all before the payment on completed work is made. With Spot Factoring, they can simply fund this specific contract, whilst they exclude any other work they have on. This gives them the available cash to ensure they can meet their payment needs and can continue to grow.
Another issue a growing business may face is credit control. As you are focusing on trying to get new business in, some customers may take longer to pay. Factoring is a funding product which also includes credit control. This means you will have a dedicated credit controller who will chase invoices in for you. With the credit controller chasing invoices in, your time will be freed up to focus on continuing to grow the business.