More and more companies are enlisting the services of invoice finance companies when they need to unlock the value in unpaid invoices. Whether you need to get an overdue invoice paid, or simply wish to get one paid early, help is available. There are two main forms of invoice financing. These are invoice factoring and discounting. With factoring, you ask the company to chase up the money themselves after they buy it from you. However, with invoice discounting, you borrow money against the invoice and chase it up yourself, settling your debt with the invoice finance company once you have been paid. Many companies choose https://www.invoicefinanceservices.co.uk/ when they do need to raise cash quickly.
Which option is right for you?
Invoice discounting may be the best option for you if you don’t want the company who owes you money to know that you have used a financing company. If you have a long-standing, good relationship with the company, this may be the best option. However, if the company in question has missed the invoice deadline, or if they only bought services from you on a one-off basis, you may prefer to opt for invoice factoring. Whatever you decide, you’ll normally pay between 10-15% of the amount owed to the invoice finance company.
Get what you’re owed quickly
Invoice financing can help you get the money you’re owed for your invoice when you need it, to boost your cash flow and keep your company running smoothly. There are many companies waiting to help you on the market, so it could be wise to talk to a number of invoice finance teams before you come to a decision. Whether you wish to borrow money against your invoice with discounting, or to get someone else to chase it up via factoring, you shouldn’t struggle to find a reputable company to help you obtain money when you need it.
