Starting up a company can be a real challenge, but growing it is a whole lot different story. With today's economic atmosphere, knowing your options can make a huge difference, and one of these is going for invoice finance.
Most business go for invoice finance for several reasons--making a business afloat and increasing its cash flow, among others.
Invoice finance is a common option undertaken by many businesses and a necessity for most once they achieve turnovers greater than 3 to 5 million.
With thousands of business shutting down its doors as the global pandemic hit the entire world early this year, many are struggling to survive. So why should enterprises even consider invoice finance?
It is a form of debtor finance that primarily aims to increase cash flow of a company without resorting to high-interest mortgages and the need to tie in a lot of directors' assets.
Although technically it is a type of loan, but more a financial solution often undertaken by companies to increase cash flow by selling their receivable sales (invoices) to factoring or debtor companies on a discount.
An invoice, in its simplest term, is a commercial document that stipulates the payable amount value of the services rendered or products sold by a company to its clients.
While invoices document incoming sales to a company, this cannot be considered like that of a dispensable cash unless payment has been made.
So if you're an entrepreneur and you're running a business in this time of high uncertainty, you might want to consider this highly viable option for your business to thrive.
