Do you have unpaid invoices holding you back? Get quick access to flexible funding through Saffron Invoice Finance
Traditional loans are debt which normally is recognised on the company balance sheet and serviced with monthly interest charges. Invoice financing works in a different way since it speeds up a business’s access to the money that it’s owed from its debtors. This type of finance does not require long-term committed contracts.
Invoice Finance is not paid back until the original invoices are settled by your clients. There are no interest payments, in fact nothing needs to be repaid at all to the funder, as the funder only collects their money from your debtors when the debtors pays their invoices. Businesses who use these services don’t have to make fixed-term repayments which boosts cash-flow!
Businesses carry costs for major jobs and payment is often slow when there’s a large corporate involved as the debtor. Invoice Financing allows businesses to take on larger and more lucrative contracts without getting stretched as they are able to get immediate access to the cash from the invoice they issue to the large corporate on completion of the job; instead of waiting the normal 30 to 60+ days for payment.
In order to grow, businesses need a steady cash-flow. There are various reasons why Invoice Finance is good for business growth. Essentially, it enables a business owner to focus on acquiring new customers rather than chasing debtors. Secondly, it allows a business to extend credit lines to its loyal customers who require credit facilities. Thirdly, it makes it possible for a business to pay its suppliers, and consequently avoid supply chain constraints. Finally, a business owner can focus on marketing his/her business rather than fending off creditors. These aspects can help you grow your business while competitors who are facing funding problems struggle.
Businesses can choose how much cash they want to access when using Invoice Financing companies. They can stay in complete control and only access those funds that they require when they need it. Also, because Invoice Financing is typically paid back in a month or two (when the debtors pays), not a year/s later, companies can access the funds again and again, like a revolving line of credit.
Business owners don’t need to leave their office, store or workshop to apply for Invoice Finance. They can connect to providers online, flag the unpaid invoices that they’d like to finance, and apply on the spot. There is minimal paperwork required (all online or via email) and money can be in the business account within 24 hours of receiving the information required, and simple extraction files sent via email can help our team prepare the process for paying you out.
Late payments from customers and bad debts can destroy a business. You can take legal action against debtors who fail to pay their debts on time or are unwilling to pay, but this approach can be costly and lengthy because you have to pay a litigator to represent your company. To avoid such a scenario, invoice discounting helps to eliminate this risk. The invoice finance company does their credit check on you debtor, independently and often take out insurance against non-payment. Such companies have professionals who know how to deal with customers who are likely to make their payments late or fail to pay completely and how to recover the funds.