March 7th, 2014.
Invoice Factoring is On the Rise
It’s no secret that many SMEs have struggled to make ends meet since the credit crunch and many businesses have unfortunately fallen by the wayside as a result of them being strapped for cash. However, The Telegraphrecently reported that one option is now on the rise again.
Invoice factoring, which was booming in the 1400s, is now back in fashion and on the increase as businesses realise that it is an ideal solution for recovering from their cash deficit and taking their enterprise to the next level. What can this alternative form of finance do for you? Let’s take a look:
Will invoice factoring help my business grow?
Yes! If, like so many other SMEs, you are struggling to get customers to part with their precious cash, then invoice factoring can help; it can free up finance (even in unpaid invoices) and blow away your money worries. It can also take the pressure away from you having to chase clients for missed payments, leaving you time to focus on growing your enterprise instead which, let’s face it, is a much more valuable use of your time.
What are the benefits?
Opting for this form of financing can help you to:
• Enjoy financial freedom: You won’t be constricted by clients who are struggling to pay their bills so your cash flow doesn’t have to be impacted by that of your clients. This will allow you to:
• Grow your SME: Putting finance problems aside, and ensuring you always have the money available when you need it, will allow your business to grow from strength to strength which will, in turn, allow you to:
• Stay ahead of the competition: By having the ability to hire when you need to and to effectively manage your business, you won’t be held back when it comes to steaming ahead in your market.
In the wake of economic downturn, business owners are realising that it takes more than good business sense to keep a company afloat whilst also driving it forward, and this is why invoice finance has seen a spike. The Telegraph writes: “the future’s bright for the industry; EU legislation will mandate that government must use electronic invoicing from 2016, forecast to give the sector a surge in demand from Britain’s blossoming SMEs.”
So how do I set up invoice factoring?
Invoice factoring brokers are the first port of call for many businesses that are looking to opt for this form of financing. Choosing a broker can be beneficial for a number of reasons:
• Getting the best deal: Enlisting the help of a broker can gain you access to not only the best solution for your needs, but also the best possible rates for your business.
• Save time: Using a broker will take the time (and stress) away from you having to find the most suitable deal and the best provider for your needs. Just let a broker utilise their knowledge and contacts to do this for you.
So, if your business is struggling as a result of clients not paying up, and you desperately want to push your enterprise forward, get in touch with us today to discuss your options – let us find the best invoice factoring deal for you.