Invoice Finance – A business line of credit

Having a revolving line of credit for business is one of the best ways to keep balance sheets and cash flow healthy. A business can use this type of financing option to pay for what they use, such as materials, labor, or rent. However, invoice financing is one of the best forms of credit for both businesses and its customers. By locking in payment plans for customers or allowing longer payment terms, businesses can set flexible terms for when their customers can pay while they get paid upfront. Here’s why invoice finance is the best solution that helps keep both your customers and cash flow under control.

What is Invoice Finance?

Invoice finance is a type of financing that businesses use to settle invoices immediately regardless of the payment terms for their customers. By simply choosing to use Selectpay’s invoice finance, businesses can get paid upfront while their customers pay the rest in line with the standard payment terms. This is a great option for businesses that need to keep managing their cash flow woes, as customers could pay in 30, 60 or even 90+ days, but your business gets paid first.

Types of Invoice Finance

There are a few different types of invoice financing, each with its own benefits.

Invoice Factoring

Invoice factoring is one option for businesses that need to get paid quickly. With invoice factoring, businesses contract with a factor to borrow money from them and pay them back with the invoices they receive. The third party will buy the unpaid invoices to provide immediate cash flow to a business.
Whilst this is a popular way for businesses to finance their invoices, it’s probably not the best option. Most providers end up taking over the business’s entire book and charge a fee based on the book size, regardless of the invoice/s being financed,

Invoice Discounting

Invoice discounting is a great option for businesses that prefer to get paid overtime. With invoice discounting, businesses agree to a discount on the invoice amount for a set period of time. This allows businesses to get paid overtime and eliminates the need to wait for customers to pay their invoices.

How Does Invoice Finance Work?

To apply for an invoice finance facility, a business just needs to complete a simple credit check once. After that, they can use the facility as and when needed up to the approved limit. And, because there is no credit check required for individual customers, the business can rest assured that their invoices will be covered.

Who Should Consider Invoice Finance?

Companies that want to give their clients a more flexible way to pay for invoices should consider invoice financing. This type of financing is also great for businesses that need to manage their cash flow effectively. Invoices are paid fast, and customers have the flexibility to pay on a schedule that works for them.

Get Started with Invoice Finance for Your Customers with Selectpay

Selectpay invoice finance allows your business to offer more flexible payment terms to your customers while keeping your cash flow in control. We offer a variety of payment terms and transparent fees, so you can find the right option for your business.

Part of Selectpay’s Invoice Finance service, we’ll pay you 85% of your invoice upfront and the remaining 15% when the invoice is fully paid by your client. Importantly, our Invoice financing solution does not have the layers of fees traditional IF solutions have such as line fees, monthly fees, and lock-in fees. With Selectpay, there’s only one small transparent fee for this service and you choose which invoice you wish to fund.

Get started today and see how invoice financing can help keep your balance sheet healthy.

Why Buy Now, Pay Later is Making Major Inroads with B2B Business

Buy Now, Pay Later is the future of business. The trend has been growing in popularity for a few years now, and it is only going to continue to grow. The biggest online retailers including Amazon, and payment processors like PayPal have been implementing BNPL solutions for a while now.

But B2B buy now, pay later is taking this trend to another level altogether by taking over B2B business!

What is Buy Now, Pay Later for B2B Business?

When a business needs to pay suppliers for goods and services, well-managed cash flow is critical. Large one-time payments for large purchases can be difficult to come up with, and small payments for smaller orders can take up a lot of time to come by.

Buy now, pay later (BNPL) allows businesses to pay for goods and services over time. Customers can choose to pay for products and services in installments. This way, businesses can get the money they need to purchase goods and services without having to worry about large one-time payments.

How it Works

Basically, B2B BNPL is when a customer (who is also a business) buys something like office supplies or needs marketing or legal advice, or any other products or services then pays for the purchase later by spreading the payments out over time.

At the time of the purchase, the customer can choose BNPL as their payment method, and they can get the product or service without paying the full amount upfront.

On the other end, B2B buy now, pay later providers like Selectpay will pay your business the total amount upfront on the customer’s behalf. So, basically, you wouldn’t need to wait for your customers to pay to receive your payment. The provider will then collect the payment from the buyer based on their terms.

Why Buy-Now, Pay-Later is Taking Over

There are a few reasons why BNPL is taking over the B2B sector. The most important is cash flow management. The second is Growth plans, utilising BNPL can facilitate growth by freeing up cash flow. At the same time, the service can also help you immediately collect payments for smaller orders even if the customers want to pay for their orders over time.

Get Started with B2B Buy Now, Pay Later from Selectpay

If you’re looking for B2B buy now, pay later solutions, look no further than Selectpay. We’re the leading provider of BNPL solutions for B2B business and we’re here to help you get started.

Contact us today to learn more about our services and how we can help you accelerate your business growth.