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.
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.