Why Invoice Finance can help your business coming into the Festive Period
As we approach the festive period, many businesses will face an increased work load. With more work in the run-up to Christmas, many businesses will find their cash flow stretched by customers taking longer to pay, especially in December. Here, we discuss how different forms of invoice finance can provide financial benefits to customers throughout the winter months.
Invoice Finance – And how it works
Invoice Finance is a product which allows you to draw funds from your outstanding business to business invoices. Put simply, if a customer is paying you on credit terms, you can borrow a percentage of this cash prior to them paying, alleviating any cash flow issues which may arise. When customers begin to delay payment over the festive period, you can rest easy knowing the cash flow from your invoice finance facility will allow you to still pay wages, material costs and any other overheads you may have.
Short Term Requirement
With companies extending their payment terms, and generally having increased workload through the winter months, short term invoice finance facilities are available. Spot Factoring is a great way for businesses to protect their cash flow, but avoid being tied into a longer term contract. With no tie in or minimum fees, Spot Factoring is especially popular throughout the festive period. Its flexibility allows businesses to simply borrow funds when required, whether it’s for a small project or a larger ongoing timeframe.
Credit Control Experts
Whether you have a one off or ongoing facility, you will have the benefit of an experienced team of credit controllers to chase in invoices for you. During the busy run up to Christmas, businesses can find themselves with less time to chase in outstanding invoices, which can lead to their customers taking longer to pay. Using an invoice finance facility can help to alleviate that issue, as the team of credit controllers will help to ensure your customers pay on time.