Times are changing, and so are the finance options for small businesses. With the alternative finance market in the UK reaching a whooping £3.2 billion in 2015, maybe it's time for your business to get a slice of the funding pie?
But wait, what exactly is invoice finance?
Invoice finance, discounting in particular, is a simple way for businesses to improve their cash flow by selling their invoices and getting cash right away compared to waiting out the 15-120 day terms typical for invoices to be paid by clients. See more about how it works here.
So we've compiled a list of five great reasons why you should have an invoice finance service like Investly on hand:
1. It's faster than traditional financing options
With the possibility of turning your invoice into cash in your account within a day or two, invoice finance is definitely faster than most bank loans or lines of credit. And we all know, time is money.
2. It doesn't incur new debt
You're only borrowing money you have already earned. It's not a loan, it's not debt. You don't have to worry about increasing the liabilities of your business.
3. The fees are low
With a fee of only 1.5%-2.5% per invoice and no setup or hidden fees, invoice finance can become a great go-to solution when needing that extra cash boost.
4. No long term commitments
Compared to traditional factoring, where you hand off your whole ledger to a factoring company, Investly lets you finance individual invoices with no long term contracts or commitments. Only use it when you need it and only pay for the invoices that you finance.
5. Increase your turnover and buy more inventory
No matter the business you're in, extra cash on hand is only a good thing. You can pay your suppliers earlier, increase your production, and settle all your financial responsibilities on time. It's a simple solution to growing your business faster and stronger.
Ready to give your business a cash boost
and give invoice finance a try?