6 ways invoice financing can help cash flow

Cash flow problems keep business owners up at night

Tight cash flow makes it hard to pay bills, hire staff, buy inventory, or expand. It certainly stresses business owners out – keeping them up at night & worrying - Where do i get working capital from? Businesses in this situation have traditionally either taken out a loan, used a high-interest credit card, or struggled by without the cash. Many choose to go without, because lending seems risky and hard to do.

Invoice financing can be a faster, more flexible option.

What is invoice financing?

Fifo Capital will advance a business up to 90% on unpaid invoices. The business gets cash almost straight away, instead of waiting for the debtor to pay. And when the debtor does pay, the business gets the remainder of payment less our small fee.

There are fees to consider, of course, but it can be a great way for your business to overcome cash flow shortfalls.

Six advantages of invoice financing

1. Get money without extending long-term debt

While traditional loans are a long-term debt that usually has to be carried on the balance sheet for over a year, invoice financing works differently. It speeds up a business’s access to the money that it’s owed. This type of finance is generally able to be paid back quickly, which makes it a good shorter-term solution.

2. Only make repayments when the money comes in

Invoice finance isn’t typically paid back until the original invoice is settled. Businesses who use these services don’t have to make fixed-term repayments. That’s great for cash flow!

3. Take on bigger jobs for growth

Small businesses carry a lot of cost on big jobs. Payment is often slow when there’s a big business involved. That’s a bad combo. Invoice financing allows businesses to take on potentially lucrative contracts without getting stretched too thin.

4. Choose how much money you need, and how often

Businesses can choose how much credit they take out when using Fifo Capital invoice finance facility. You can utilize us for one invoice or many, that way you can stay in control of your receivables and credit needs. Also, because invoice financing is typically paid back in months, not years, they can borrow again if need be.??

5. Money in your account in 4 hours

Businesses can obtain invoice finance within a day or two of applying. Once approved with Fifo capital, we can pay your business in as little as 4 hours. That allows you to act fast and fix cash flow issues quickly.

6. Applying for invoice finance is easy

Business owners don’t need to leave their office, store or workshop to apply for invoice finance. You can connect to Fifo Capital via online and APPLY HERE , flag the unpaid invoices that you’d like to finance, and apply on the spot.

The benefits and drawbacks to consider before you apply

In spite of its differences with credit cards, loans and overdrafts, invoice financing is still a form of borrowing and as such it comes with both benefits and drawbacks.

• No repayments.?Without the stress of ongoing repayments, you can focus your efforts elsewhere.
• No more secured assets.?Forget the constant anxiety that comes with securing property and personal possessions.
• No interest rates.?Repayments are only reliant on the money you’re owed, which cancels the need for interest.
• Plan your finances effectively.?Because you know when the money will be in your account, you can make decisions on future outgoings with more confidence.
• A flexible service.?Unlike a long-term loan, you can decide exactly how long you require the services of Fifo Capital.

Fifo Capital’s cash flow management tools help businesses to get their finances under control, and to grow. By learning to strategically apply invoice finance, business owners can free up more of their time for high-order concerns, and pave the way for better and more substantial growth investment.

If you’d like to discover more about how invoice finance or our other Cash Flow and Working Capital solutions can help your business boost cash flow, we are offering a free, 30-minute Advance Finance Discovery call.

Book your Free Advanced Finance Discovery Call HERE.