As unemployment figures continue to fall, dipping to around 2.21million, the number of people who are self-employed is on the rise.
The Draw of Self-Employment
Figures released by the Office for National Statistics last month show that the number of people who are now self-employed has rocketed to a record 4.5million; as this figure equates to almost a fifth of the UK’s workforce, self-employment has been pin-pointed as one of the reasons behind the drop in those out of work, and it has been noted that the UK is leading the way in self-employment.
Furthermore, the Royal Society for the encouragement of Arts, Manufactures and Commerce released a study earlier this year which predicts that by 2018, those who work for themselves will actually outnumber those working for the public sector.
Some say that the rising self-employment figures are as a result of limited job availability and those wanting to take their career matters into their own hands. Whatever the reason, the signs are positive, but without the security of an employer, you need to ensure you protect yourself and your income when being your own boss.
Whether you are a freelance writer, an IT consultant or a business person embarking on your first venture, you will need to ensure a regular cash flow in order to stay afloat. You’ve worked hard to build up your portfolio of clients, and you’re delivering services that they’re happy with, but how do you guarantee they pay? Invoice finance is a great way to ensuring you have that safety net in place.
All About Invoice Finance
By opting for invoice finance, you can ensure your clients pay up on time and in full so you don’t have to worry about slipping into the red. You can stop worrying about the money that’s coming in, and start worrying about building your empire instead.
There are two main types of invoice finance available; these are:
• Invoice Discounting: Discounting is where you maintain control of collecting the payments so your clients aren’t aware that the process is in place.
• Invoice Factoring: With factoring, you leave the debt collecting to the lender so you don’t have to deal with it.
Which option is best for you will depend completely upon your circumstances and that of your business; if you’re looking for advice for protecting your income while self-employed just give us a call.