So, what are the benefits of Invoice Finance?

As a UK SME, it can sometimes be challenging to manage cash flow and keep your business up and running. Invoice finance can be the solution you've been looking for. Invoice finance is a type of funding that allows you to get access to the money you need while waiting for unpaid invoices.

Here are some of the benefits of invoice finance for UK SMEs:

1. Improved cash flow

Cash flow problems can limit opportunities for business growth. Invoice finance can help resolve these issues by providing a cash injection. Rather than waiting for your customers to pay you, invoice finance allows you to get paid sooner, helping free up working capital.

2. Easy accessibility

Invoice finance is available to almost all UK SMEs regardless of their size and industry sector. Banks and other financial institutions have created a range of invoice finance solutions suitable for different businesses. You can choose the type of invoice finance that fits your needs, such as invoice factoring or invoice discounting.

3. Saves time

Invoice finance has the added benefit of streamlining your accounts receivable processes. You no longer have to spend time chasing up debtors, as your finance provider can take responsibility for this. Additionally, by sending regular payment reminders and having a clear payment policy in place, you can ensure that your customers are aware of their obligations and are more likely to pay their bills on time. With the process of invoicing, tracking payment, and reconciling the accounts, the time saved will enable SMEs owners to focus on building relationships with clients and developing new business opportunities.

4. Flexible funding

Unlike traditional loans, invoice finance is a flexible form of funding. You can draw down funds as and when you need them, allowing you to manage cash flow on a rolling basis. If your business is seasonal, you can adjust your funding requirements accordingly. This also gives you control over the cost of the facility, with the ability to not draw funds being just as important as having the ability to drawdown when the business requires it. Through planning a careful cashflow, businesses can utilise an invoice finance facility more efficiently and save themselves ￡￡￡'s on the interest costs .

5. Bad Debt Protection

Instances of bad debt can have a big impact on any business, especially on small businesses. Through Invoice Finance you will be given then option to insure your customers against bad debt to protect yourself and your business financially. By properly screening potential customers before extending credit, you can significantly reduce the risk of bad debt. This can be done by using credit checks, references, or by setting credit limits for new customers. Insuring your customers against bad debt is crucial in maintaining a healthy cash flow for your business and protecting your bottom line from any financial damage.

6. Working with an expert Broker

Working with a broker, like Finance For Business, who has expertise in the invoice finance market can provide a range of benefits for a client. First and foremost, we have in-depth knowledge of the industry and its players, enabling us to identify the most suitable lenders and financing solutions for our clients. An experienced broker like Finance For Business UK can also provide valuable insights and guidance on the various products available, what is suitable for a client's business, and the costs and fees associated with each option. With our extensive network and relationships in the industry, FFB can negotiate better terms and rates for their clients, saving them valuable time and money. Moreover, working with FFB can help clients avoid potential pitfalls and make informed decisions when it comes to selecting the right financing option for their business. Overall, by partnering with FFB, you will have access to a brokerage with expertise in the invoice finance market, experience of setting up facilities, and access to the best funders through our industry connections, leading to more successful financing transactions.

In conclusion, there are many benefits to invoice finance for UK SMEs. Improved cash flow, easy accessibility, saved time, flexible funding options and debtor protection are just some of the advantages of using this financial instrument. It's a funding option that many SMEs should consider to help strengthen their finances, grow their business and achieve their goals.

Chris Rimmer?– Director – 07773 028660 – [email protected]

Jeff Rimmer?– Managing Director – 07795 662245 – [email protected]

Rio Ball?– Business Development Manager – 07496 441215 – [email protected]

Article by Chris Rimmer - FFBUK Ltd