Helping our clients understand the funding solutions available
5 things to consider when comparing factoring quotes
Invoice finance is a niche, over-complicated product!
It’s a fantastic cash flow solution when deployed correctly, but unless you know exactly what you should be looking for, you can easily get it wrong and end up with a funding facility that isn’t working as well as it should be for your business.
5 balance sheet assets you can leverage
Are you frustrated by a lack of cash?
You may already have a bank overdraft or a loan, but what if it isn’t enough?
Many business owners aren’t aware of asset based lending, and exactly which assets on the company balance sheet can be leveraged to generate working capital.
In this article, I summarise the main considerations of each asset class.
Invoice finance vs bank overdraft: which is better?
Invoice finance is most commonly compared with a bank overdraft.
But invoice finance has a couple of very important advantages.
What is invoice finance?
Invoice finance is a way for businesses selling their goods or services to other businesses to borrow cash using their outstanding sales invoices (or accounts receivable) as security.
Your unpaid sales invoices (debtors) are an asset; provided you are selling to good quality customers and the invoices are going to get paid, they are of value to a lender as security or collateral for a loan.
Invoice discounting vs factoring: which is better?
So, which is better for your business - factoring or invoice discounting?
Some businesses appreciate the additional benefits of invoice factoring; out-sourcing credit control can save time and money and reduce the risk of bad debts.