Should a Business Use Invoice Finance

Many people wont really know or may have never really heard invoice financing. It’s a form of financing that businesses can use to help boost their cash flow in times of need.

There is plenty of information regarding invoice finance on the Internet that a person can read through to see if this would be a suitable form of lending for their selves and their business.

Invoice finance works by a business selling their unpaid invoices to the company for a percentage of their total; this is usually around 85%.  The finance company will then collect payment from the clients on the businesses behalf.

This can deter some clients from doing business with company in the future, as they will know they have been experiencing some financial problems.

In some cases the business is able to ask the finance company to remain silent so their clients don’t know they have enlisted their help and there for doesn’t jeopardize any relationships.

Once the finance company has received all the payments they will deduct their costs and send back any money left to the business.

This entry was posted on Tuesday, April 29th, 2014 at 3:31 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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