Invoice Finance – The Key to Managing Cashflow

It doesn’t matter if you’re a start-up or a Fortune 500 company, managing your cashflow effectively is one of the best ways to get the most returns. Invoice finance has a host of benefits to help you and your clients. It provides you with the cash you need to keep your business running smoothly as well as the backing you need to deliver outstanding customer experience.

Here Selectpay provides some of the advantages of using invoice finance to manage cashflow!

The Advantages of Invoice Finance

Invoice finance, sometimes also referred to as invoice discounting, provides a host of advantages to help your business run more smoothly and efficiently, giving you the cash you need when you need it. Some of the key benefits include:

Better Cash Flow: As mentioned above, invoice finance can take care of all your cashflow problems by providing you with the capital upfront that you need to make vendor payments, purchase supplies, and more.

Quicker Money: Rather than waiting for your client’s payments to be processed before you buy supplies, initiate payroll processes, and pay outstanding vendor payments, invoice finance gives you the cash you need ASAP. Once setup, it can help by financing your invoices seamlessly, freeing up valuable time and resources.

Quicker Growth: If you’re trying to grow your business, invoice finance can accelerate that growth by enabling you to expand your business – without having to rely on client payments for scaling your business.

Tips for Making the Most Out of Your Invoice Finance Solution

 To get the best out of your invoice finance service there are some things that you can keep in mind to make the whole process easier – including understanding your business’s needs upfront.

  1. Prioritise your cashflow needs;
  2. Keep an eye on your company’s spending;
  3. Gain better oversight on what your business needs to keep the focus on;
  4. Keep all staff members in the loop when it comes to cashflow needs; and
  5. Not relying on client payments to clear before you make payroll payments and other necessary decisions for your business.

How Selectpay’s Invoice Finance Solutions Can Help Grow Your B2B Business

 At Selectpay, we offer holistic invoice finance solutions to help scale your B2B business. We help you grow and keep up with your competition by covering your business’s payments. We do this by providing up to 85% of your outstanding invoices upfront, without the waiting period commonly associated with invoice processing. Additionally, Selectpay also enables you to choose the terms on which your clients pay you.

To learn more about our invoice finance solutions, contact us online today or call 1300 566 229!

Is Invoice Finance Your Secret Weapon for Cashflow Management?

Cashflow management tasks like overcoming payroll challenges, getting supplier payments out on time, and other things, can easily be overwhelming for a business. This is especially true if your industry or the economy is experiencing a downturn. These days, accessing capital isn’t as easy as it used to be and many are finding ways to cut costs while also facing unique cashflow challenges.

Since such challenges impact a business’s daily operations, many are searching for funding services that provide short-term funding solutions that they have more control over, like invoice finance.

Here, Selectpay highlights how invoice finance can be your secret weapon when it comes to cashflow management!

 

PROs of Invoice Finance for Cashflow Management

  • Fast Access to Funding: One of the foremost benefits of invoice finance solutions is that they offer fast access to a funding source. You’ll be able to receive the funds often, within 24 hours of sending in your invoice.
  • Improves Cashflow: Invoice finance helps improve cashflow by minimizing the gap between the time your business initiates an invoice until a customer pays it. It also provides more efficient funding for accounts receivable and any last-minute payments.
  • Easily Accessible: For those in need of more accessible funding options and alternatives to bank loans, invoice finance is key. Most businesses will find that it’s much easier to qualify for and receive funding in a short amount of time.
  • Scalability: Invoice finance solutions grow with your business, making it an easily accessible and reliable funding source. Moreover, it’s very scalable as it grows with you as your company expands and your cashflow needs change.
  1. Saves Time: Once set up with Invoice Finance, you can seamlessly get paid for your invoices upfront. This frees up valuable time and resources better spent elsewhere.
  • Extended Payment Terms: With invoice finance, you can extend your payment terms and still remain financially stable. This can help you attract new business and clients looking for more flexibility when it comes to payments, without sacrificing cashflow.
  • No Need to Put Down A Security: Often, for large loans or fast cash from banks and other lenders, a business is required to put down some sort of security., This can be a property or another asset and it ensures that the lender doesn’t lose out on their investment. However, invoice finance is an unsecured lending solution and doesn’t require this at all.

 

CONs of Invoice Finance for Cashflow Management

  • Liability Issues: If for one reason or another, your customer is unable to pay their invoice, you will likely be held liable for the payment by your invoice finance company. This can certainly throw a wrench in things and add unforeseen costs that may be detrimental to a company already experiencing cashflow issues.
  • Cost Issues: When investing in invoice finance solutions, it’s important to remember that it will affect your company’s overhead. This is because the solution you choose for invoice finance will take a fee when collecting payments. This will either be a percentage of the invoice value or in Selectpay’s case, fixed upfront plus ongoing management fees. In some cases, depending on the fees, you can even build them in your invoice. It’s up to you to decide whether the fees charged by your invoice finance service are worth the access to the upfront cash injection you’ll receive.
  • Only Works for Commercial Invoices: Unfortunately, invoice finance solutions are only viable for commercial businesses that work in the B2B sector, rather than directly with consumers. This is because invoice finance solutions work on net terms. For companies dealing directly with consumers, other financing options exist such as bank loans and trade finance solutions.

 

Contact Selectpay for invoice finance solutions today!

With Selectpay’s invoice finance solution, you pick and choose what you want to fund when you need it and only pay for it as you go. This provides you with more control over your cashflow. This “pay-as-you-go” style of invoice finance makes it easy for you to find the perfect solution for all your cashflow management needs. With only a one-time invoice fee rather than having to pay monthly for services, Selectpay is easier and more transparent.

Contact us online today to learn more about how we can help improve your company’s cashflow management issues or call 1300 566 229 for more information.