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Are you tired of waiting for customers to pay you, and in turn having this impact your cashflow?

The old adage that “cash is king” has never rung more truly than as we enter the holiday season of what has been a truly extraordinary and challenging year.

Your business may well be seeing out the year with strong sales but the businesses you are dealing with might themselves be struggling with cashflow or your payment terms might mean that strong sales heading into the holiday season might not translate into receipts until well into the New Year.

However, you will still have outgoings, staff wages to cover, perhaps holiday bonuses and certainly suppliers to pay. If you’ve had a less than perfect sales year due to the COVID-19 pandemic, there’s every chance that you’re relying on the end of year sales boost to improve your cash position and provide a buffer for the expected increase in costs. That means having access to that all critical cash will likely be important as you see out the year.

If you’re facing short term liquidity challenges but you have a reliable sales book with delayed payments on invoice, it may well be worth considering an invoice financing solution to boost your immediate cash reserves.

So how does it work? Invoice finance, also known as debtor finance, can be a useful financial strategy to help with short term cashflow management for your business. It allows you to turn unpaid invoices into cash by accessing up to 85% off cash on unpaid invoices in a short turnaround.

 

 

Rather than wait for customers to pay you, an Invoice Finance solution allows you to borrow against unpaid invoices to fund your business requirements.  Whether or not your customers have paid you, your outgoing financial obligations won’t have disappeared. With invoice financing, you can generate advanced cash release of up to 85 per cent of your outstanding invoice book and access a stress-free solution for managing critical liquidity at what is generally considered to be a stressful time of year.

Invoice financing is a great approach for cashflow management for many businesses, because you’re not securing the finance against assets or using directors’ guarantees – the finance is secured against committed future cashflows based on invoices to customers. That means you pay down the finance when you receive invoiced funds from your sales, while freeing up much needed cash to operate and grow your business.

Importantly, invoice financing is a useful non-bank option for improving cash flow – you don’t need to rely on extended waiting times for approval and, because the invoices provide the collateral for credit provision, as long as you have been in business for six months or more, there is no need for typical security against the finance, like you would expect with a bank loan.

If you’re facing short term liquidity challenges but you have a reliable sales book with delayed payments on invoice, it may well be worth considering an invoice financing solution to boost your immediate cash reserves.

If you are challenged with short term liquidity issues but you have a strong book of invoiced sales for which you are awaiting payment, then invoice finance might just be the perfect solution for you. Contact Grow Finance today and, with our rapid approval processes, you could have access to the cash you need within 24 hours.

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