What is Invoice Finance?
“Cash is King.”
Many small businesses have problems with cashflow which are due to late paying invoices. The average reported time to pay an invoice is 38.97 days and 27% of invoices in the UK are paid beyond the agreed terms. This can complicate cash work for businesses and in turn can affect their efficiency.
Depending on the nature of your business and what you’re looking to do, the time frame might be longer. One possible solution is invoice finance.
Invoice financing allows businesses to borrow money against sales invoices that have been issued but not yet paid. This helps businesses improve their cash position, pay suppliers and employees, and reinvest in growth and operations earlier than if they had waited until their customers had paid their balances in full.
When you contact your local ASC Director, they will arrange an in-depth discussion with you to discuss your different options for financing. This will help you understand which financing is right for your business and if invoice financing is an option.