How to use invoice financing to protect your cashflow

  • 04 April, 2024
  • Sharon Piening
invoice financing

Cash flow is the lifeblood of any business. However, challenges often arise, such as delayed client payments, seasonal fluctuations, or unexpected expenses.

Enter invoice financing – a strategic solution to regain control and propel your business forward.

But what exactly is invoice financing?

In essence, it’s a transformative tool. Invoice financing empowers you to swiftly convert outstanding invoices into immediate cash, eliminating the frustrating wait for payments.

Here’s a streamlined breakdown:

  • Issue invoices as usual for your products or services.
  • Submit these invoices to an invoice financing provider.
  • Receive upfront cash, typically up to 85% of the invoice’s value.
  • Upon full payment from your client, receive the remaining balance (minus applicable fees).

Why consider invoice financing?

  • Accelerated Payments: Say goodbye to extended waiting periods for client settlements.
  • Retain Autonomy: Invoice financing allows you to maintain full control over your assets, unlike conventional loans.
  • Confidential Facility: Your invoice financing arrangement can be kept completely confidential.
  • Enhanced Security: Invoices themselves serve as collateral, reducing risk for lenders and simplifying the financing process.
  • No Traditional Forms of Security Required: Unlike traditional loans, there’s no need for physical assets like real estate as security.

However, it’s prudent to weigh associated costs, including discount fees and interest rates.

Thoroughly comparing offers from multiple providers ensures you secure a competitive arrangement tailored to your financial objectives.

Ready to make invoice financing work for you?

At The 500 Group, we specialise in helping you secure competitive finance offers more quickly and easily, so you can focus on growing your business.

Call our business finance experts now on 1300 500 254 or email