Cash flow difficulties can make even the best-run businesses struggle from time to time. Slow payers can mean you’re spending time on collection rather than using your energy to drive your business forward, but even on-terms payment can put resources under stress when funds are locked up the in accounts receivables ledger.
But what if you could unlock this value, receive early payment for every invoice, and use it to ease all your cash flow problems at a stroke?
Invoice discounting lets you receive funds from your invoices almost immediately after you issue them, rather than waiting for 30, 60, or even 90 days to be paid. You can receive up to 90% of an invoice’s value within 24 hours of verification, and all it costs is a small fee which is taken when the customer pays their bill.
What Are the Advantages of Invoice Discounting?
- Compared to traditional business loans, invoice discounting has several strong advantages.
- It’s quick to arrange, and your funds are released within 24 hours of verification.
- Discounting costs less compared to typical high-interest unsecured loans or commercial overdrafts.
- The approval process is simple, and there’s no security required.
- Discounting allows you to unlock funds without increasing debt or risking business assets.
- The larger your accounts receivable ledger, the more funding you can access.
- Invoice discounting provides flexible funding with no long-term commitments.
And what’s more, you’re protected against debtor defaults. If your invoice is unpaid because the debtor goes into administration, you’ll be covered by our debt protection service. We can claim the outstanding debt through insurance, and you won’t need to repay the invoice advance.
Is Your Business Eligible for Invoice Discounting?
Although invoice discounting is easier and quicker to arrange than other forms of commercial finance, there are a few qualifying criteria which need to be met.
- A minimum business turnover of $1m p/a.
- At least four regular paying customers on your ledger.
- Invoices must be issued to businesses rather than individual consumers.
Any small to medium business which meets these qualifications can use invoice discounting to access funding, with no extra debt burden or reduction in business equity.
Getting Started with Invoice Discounting
If you want to see how invoice discounting can solve your cash flow problems, contact our specialist team with just a few details of your business and your funding requirements. The application process is quick and easy, and you could solve your outstanding invoice problems in just a few hours.