The Advantages of Invoice Finance Companies in the UK

Perhaps one of the biggest stumbling blocks that small businesses face is slow payers when it comes to accounts receivable. Many companies need this money to keep their doors open. They need the money to pay their bills, pay their employees and the list goes on and on. When a client is slow to pay on an accounts receivable, the repercussions it can cause a small business can be disastrous. Fortunately, with invoice finance companies uk, there is a way to maneuver around slow paying customers and still have the money that is needed to keep the doors of your business open.

If you own a business, you’re probably very familiar with the idea of customers that are slow to pay on existing invoices. However, with invoice financing, you can basically sell those invoices for up to 90% of the value of those invoices. The lending company will immediately pay you for the invoices. This helps your business to get immediate money, which can often times be very crucial to your business’s short term success. It’s not uncommon for small businesses to live week to week and to survive financially based on how many invoices are paid by customers with outstanding accounts.

Not only is getting paid for the invoices extremely easy, the repayment of these invoice loans are actually quite convenient as well. Simply put, once the invoice is paid by the customer, the finance company is repaid for the invoice loans they provided.

Not only does this type of financing help businesses stay open, it can also help keep the necessary capital within a business to be used for other things. For example, if you’re considering expanding your facilities or hiring more employees, your money won’t get tied up covering slow to pay clients. You can receive the money from the invoices via invoice finance services and you can still have the capital needed to move ahead with the expansion of your business.

As you can see, there are many benefits to using invoice financing. If you’re struggling with clients that are slow to pay on invoices, and you need that capital to pay your bills or to expand your business, you may want to consider contacting an invoice finance company at your soonest convenience.