9th June 2022

5 reasons why invoice finance means your business is doing well

5 reasons why invoice finance means your business is doing well

Invoice finance has become a safe way for businesses to grow and support their cash flow. This additional funding can be used for the day to day running or growth of your business. Invoice finance is a sign that you’re taking steps to secure the future of your business and being smart about your financial choices.

Here are five reasons why invoice finance means your business is doing well:

You’re being proactive about cash flow

We all know that cash is like oxygen to growing businesses – you’ve got to have it to survive. Invoice financing means that cash can be made available to you as soon as an invoice is issued. No more waiting the typical 30, 60 or 90 days to get paid. You can use this additional capital to grow your business, pay the wages of your staff, or purchase the stock you need.

Gaining access to funds tied up in existing invoices means you can quickly cover company expenses and snatch those new business opportunities as they come up. Setting up invoice finance shows that you have the forethought to prevent any stagnant periods of cash flow when waiting on customers to pay their invoices.

Use extended payment terms as a selling point

Most SMEs would love the chance to work with the bigger players in their industry – not only because of the cash value but because it adds credibility to your brand. However, with big business often comes tricky extended payment terms. These can mean your cash flow takes a hit with those faraway paydays. Invoice financing allows you to offer long payment terms and fill the gap between making a sale and being paid. You can confidently extend payment terms, without stunting the growth of your business, and prove that your company can easily go toe-to-toe with the big guys.

You’re spending your time wisely

When you’re a growing SME, you and your staff are often required to wear many different hats. Sometimes the person in charge of invoicing will also be handling several other roles across the business. The last thing you need is them wasting valuable time chasing up old invoices when they could be making new sales and helping your business blossom. It’s estimated that businesses spend 90 minutes every day chasing late payments. With an invoice finance facility in place, your team gets that essential time back to do the tasks that really matter – while all the hassle of credit control is taken off your plate.

You’ll be able to scale quickly without your cash flow slowing you down

When you’re stuck waiting for your customers to pay their invoices, it can limit how quickly your business can grow. If cash is tied up in outstanding debts, you may not have the money to expand as fast as you want to. With invoice finance, poor cash flow is no longer a barrier to scaling up your business. You have quick access to the funds you need to increase production, hire new staff, purchase stock and much more. Taking out invoice financing uses the system to your advantage: it’s proof that you’re making smart decisions to get access to cash that might not otherwise be available and turning those funds into growth.

Your assets are safe

Where other business loans may require you to use your physical assets as collateral, invoice financing doesn’t put what you own at risk. As it works in place of your invoices, your assets remain your own. This means that you’re making the financial decisions you need to expand your business while keeping your existing capital secure.

At Optimum Finance, we utilise innovative technology to offer a range of flexible funding solutions, which grow alongside your business. Get an instant estimate for the amount of funding you could access with our finance calculator. Products include invoice discounting and factoring that can boost your cash flow and give you access to a dedicated credit control team.

Email or call us to speak to our experienced team of experts and find out how invoice finance could help your business. We pride ourselves on getting things done quickly and providing access to cash within 24 hours of approval. We are passionate about finding solutions and delivering to clients’ needs.