There are many reputable and reliable invoice financing services who can help you if you feel you would benefit from invoice financing or discounting. Whether invoice financing or discounting is right for you can depend on many factors, but what most companies bear in mind is their relationship with their client. With invoice discounting, you can borrow money against your invoice and settle your debt with the finance company once you have been paid. You remain responsible for chasing up the money. Discounting could be the most suitable option if you have a good relationship with your client, you don’t want them to know you’ve been working with a third-party, you think they will be buying products or services from you in the future and you don’t mean pursuing the payment yourself.
Why would you choose factoring?
If you’ve struggled to get the invoice paid, you don’t mind the company knowing you’ve got a third-party involved, you don’t have your own in-house finance team or you doubt the company will be buying from you in future, factoring may be best. With factoring, you sell your invoice to a finance company who then takes over the pursuit of payment.
Boosting your cash flow
If you do want to benefit from invoice financing, but don’t know where to start, you could ask around for recommendations or look online for reviews of finance companies. It could be wise to speak to two or three different companies about what they can offer you so you’re able to come to an informed decision on which firm to choose. Invoice financing can give you the breathing space you require if you need to boost your cash flow, have your own debts to settle or if you’ve been given an excellent investment opportunity that just cannot wait.