Once businesses that invoice have completed work for clients, they have to wait for 30, 60, even 90 days to get paid. Generally, they run into cash-flow issues. You can’t charge your customers until you’ve done the work for them. But you need to buy resources, pay wages, tools, and materials to complete your job. This often leaves business owners spending money from their own pockets and a shortfall in cash flow.
Invoice finance can solve this problem for you. But how exactly does it work?
What Is Invoice Finance?
It can be thought of as a type of loan which revolves around the invoices you issue. The amount of money you’re able to borrow is typically based on the amount of money you have in outstanding invoices. Typically 80%-90% of all the outstanding invoices you have can be released as an upfront payment. An example would be if you have £100,000 of outstanding invoices you are owed, up to £90,000 can be paid to you as an upfront payment!
Using a method like this is a great way to ensure that you get hold of your required finance nice and quickly. Your lender will be using your invoices to vet, rather than focusing on all of your financial performance. There are many different types of facilities available. Pinnacle will tailor the one to fit your requirements.
Who Needs Invoice Finance?
Many sectors of businesses can benefit from a tool like an invoice finance. Construction companies, domiciliary healthcare, haulage, recruitment, and a host of other industries use invoice finance companies. If you find yourself needing to cover the costs of the projects. You require finance to cover other parts of your business, invoice finance is always an excellent choice. It can transform a business’s cash flow and allow turnover to grow. Take on larger projects and scale up.
Why Choose Invoice Finance?
Invoice finance companies offer a range of benefits to small and medium-sized businesses through to corporations. These loans are very secure and give you the financial backing you need to boost cash flow and grow your business. The facility can be tailored to fit the business and reduce administration. It is very hard for invoice finance to snowball or become unmanageable. You won’t be allowed to borrow more than you can get back in invoices.
How Can Pinnacle Business Finance Help?
Here at Pinnacle Business Finance, we have a wealth of experience when it comes to managing an invoice finance facility. We’ve worked with countless businesses to ensure that they secure the correct type of commercial finance to enhance their business. This type of loan is one of the most popular.
Our dedicated team is happy to offer support and guidance about our invoice finance services. We also offer business loans, merchant card terminals, asset finance, and a range of other financial products that can be used to give your business the financial backing it needs. Get in contact on 0117 2510048 or email email@example.com if you’d like to know more about how this could potentially work for you.