4th April 2022

Who can use invoice finance?

Who can use invoice finance iain hendry

A commonly asked question we get is “who can use invoice finance?”. Below are some of the business types that can benefit from our funding. If your business fits into these categories, then an invoice finance funding facility could support your business in its day to day running and growth.

B2B suppliers

B2B suppliers, also known as business-to-business suppliers, supply products to other companies. Invoice finance for B2B suppliers is ideal because many businesses don’t pay their suppliers immediately. We only work with companies that are B2B or have a B2B offering.

Most B2B suppliers must accept longer payment terms to allow the money paid for a final product to travel down the supply chain. It can be 30, 60 or 90 days before finished products or delivered services are paid for. Financing offers early payment for invoices, so businesses don’t have to wait for additional cash flow. Invoice finance supports B2B businesses to operate effectively despite long payment terms.

Businesses offering long payment terms

Businesses working with big customers that insist on long payment terms can suffer from a slow flow of cash. Most big companies prefer payment terms of 90 days or more. While you can always deny such payments, allowing long payment windows gives you a competitive advantage against other suppliers and could land you a valuable new customer. An excellent option for businesses that want to extend longer payment terms but need capital upfront is using invoice financing to make sure they have the funds needed to deliver while maintaining preferred relationships with their valuable clients.

Start-ups and scale ups

Getting a company off the ground or scaling up your production is one of the hardest things to do in business. A main limitation is often finance. You need to invest capital in operations, hiring new staff, and making sales to increase productivity and overall sales later down the line. All this requires financial resources. Invoice factoring allows you to access a bulk of money you can use to grow your business. It also allows you to outsource your credit control. This way, you can focus on other elements to help you grow your business and find new investment opportunities without any distractions.

Businesses that need upfront capital

Certain industries like manufacturing or recruitment need upfront cash to pay for the products or services they provide to their customers. The immediate cash-in-the-bank that invoice finance provides lets you pay for your raw materials or staff wages before your customer settles their bill, often at the end of the month.

Businesses with short-term cash flow issues

Businesses with short-term cash flow issues often struggle to keep operating. Business don’t fail because they stop making money, they fail because they run out of operating cash. One of the most significant challenges is paying employees and suppliers. Invoice financing can come in handy here. It allows your businesses to access money to cover the cost of supplies and keep operating. You can do what you do best without worrying about chasing debtors or running out of cash. There is often a need for speed for these businesses and Optimum can have a facility set-up and cash in your bank account in less than 48 hours.

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 cashflow 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.