There hopefully comes a time for every company when a great opportunity for expansion arises due to business booming. If you are struggling to deal with the additional demand, perhaps due a competitor going bust or increased industry exposure,now is the time to get your cash flow in check.
These can be exciting times for your company but if things go wrong it can be disastrous. There are a number of services out there which can really help in such times and invoice factoring is one of them. Using a professional company such as Touch Financial puts you in safe hands and can make your growth transition smoothly.
Quick Access to Cash
The main benefit to invoice factoring and discounting is that it allows much quicker access to funds than waiting a couple of weeks or months to receive your due payment. Unlike a loan all the money you receive is rightfully yours so there is no worrying about debt afterwards.
This can then immediately be put towards paying more staff, ordering further products and many other applications which will help your company expand sooner rather than later. A pre arranged fee will be taken off the amountbut by the time the actual invoice is paid you may have reaped it back in profits anyway.
The lender you choose to use for invoice factoring and discounting will take charge of your payments and invoices, freeing up management and employee time for other tasks. No time will be spent by you chasing up unpaid bills.
Depending on your preferences you can often choose to have the invoice factoring company deal directly with your clients, which can persuade some to pay quicker. Otherwise it can be arranged so your customers pay directly to you, making the invoice factoring facility confidential from your customer.
Clients paying invoices are usually given a deadline to meet, which means they will pay when they are able to within the agreed timescale. If this is across one month or more then it can be incredibly hard to plan ahead for your finances.
With invoice factoring you know exactly when you’ll receive the money, making financial planning a lot easier whilst removing your dependency on your bank overdraft or loans. This can be incredibly helpful to avoid getting into any sort of debt and allows you to invest finances into more products faster. place bulk orders at discounted rates knowing you’ll be in a safe position.