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Helping to bridge the gap: why invoice financing works

Of all the challenges facing small and medium-sized businesses generating cash and keeping it flowing can be two of the toughest, but Invoice financing helps SME to grow business.

Burden free

Invoice finance helps to bridge the cash flow gap between raising an invoice and getting paid, giving businesses an immediate cash-injection and then an on-going supply of working capital against the value of outstanding customer invoices as they are raised.

By ensuring the business has a stable cash flow in place, the owner can focus on the job of running and growing their business and does not have the burden of extra business debt such as a loan.

Managing the business cycle

Many firms like the flexibility offered by invoice finance as it can help them to manage the peaks and troughs most businesses experience, without having to renegotiate long-term financial arrangements.

As a form of funding for businesses, the invoice finance sector has seen a significant increase in the number of SMEs looking to use this type of funding in order to help them grow their business.

The latest figures from the trade body Asset Based Finance Association, show that on average businesses with invoice finance in place have seen turn- over increase in the first two quarters of the year, providing real support for firms looking to grow their business.

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