Invoice Discounting is a financing option that allows small to medium business’ access to working capital. Invoice Discounting is the act of selling unpaid invoices to financing companies, such as ourselves, at a discounted rate to secure cashflow quickly. The aforementioned financing company pays a percentage of invoice value upfront with the remaining balance to be paid once the invoice is settled.
Game-Changing impact of Invoice Discounting
Invoice discounting can be seen as a complex process, but it provides a game changing opportunity to generate growth for businesses at a pace that they might not be able to achieve due to the delay of invoices being paid.
A small manufacturing company struggled to meet the increasing demands of its customer base, due to shortcomings in its working capital. The Company made use of invoice discounting as a way of financing its access to raw materials and increasing its production. The company is able to meet its increased demand due to increased cash flow.
A small Business to a Business company that provides a service to other businesses. This company was having difficulties managing its cash flow due to long, often 60-day waiting periods, before invoices are settled. Through the use of invoice discounting the company was able to access cash flow to cover its overheads and as a result, the company’s cash flow was consistent and it was able to invest in more effective equipment and develop new services.
The third success story offered is a retail company that was experiencing a slow in its sales period due to an economic turn down. The Company used invoice discounting as a means of accessing funds that it needed to invest in developing its marketing to try and encourage new customers to counteract the effects of the slowed sales period.
These serve as just a few examples of the kinds of success stories invoice discounting can bring about in varying types of businesses. Invoice Discounting serves as a valuable tool for both small and medium sized business that need to access working capital quickly improve their cash flow.
Invoice Discounting as a financing options allows for businesses to access working capital quickly and improve their cashflow. If you are a small or medium sized business that sees the appeal in invoice discounting contact us today to learn more about invoice discounting can be used to help your business succeed.