Have you been looking for more information about invoice factoring online? Invoice factoring is a form of invoice financing that allows you to sell your unpaid invoices to a financier and get the money you need within 24-48 hours if not earlier. If you don’t mind your client knowing that you have been using an invoice finance company, your invoice is overdue or you don’t have the time to pursue payment yourself, invoice factoring could well be for you. Opt for invoice factoring and the financier will take over the responsibility of chasing up payment.
Which option is right for me?
Invoice discounting could be a better option if you have a good relationship with your client, you suspect they might be using your services in the future, the invoice isn’t overdue, but you simply need to obtain the money early or you don’t want them to know you’ve been using a financier. With invoice discounting, you borrow money against the unpaid invoice and settle up once the invoice has been paid by your client, who you will still be dealing with directly. You can usually expect to keep around 85-90% of the money owed to you once the financier has taken their cut. You may need to pay slightly more for invoice factoring as this essentially involves using an external collections department.
Keep driving your business forward
Firms from a whole host of companies are using invoice financing to unlock the value in unpaid invoices. It could be wise to speak to around three or four different finances companies so you can compare them before you come to a decision. Invoice financing can give you the cash boost you need to keep moving business forward, help you settle your own debts and take advantage of any investment opportunities currently available.