Invoice Finance or Traditional Loans – Which is Right for Your Business?

Whether you are a start-up trying to get on top of your cash flow or a well-established business wanting to ensure that vendors are paid on time, there are two primary solutions you can turn to: invoice finance or traditional bank loans. However, there are some distinct differences between the two, and one might be better than the other depending upon your business.

 

That’s why the team from Selectpay has collected some important information about both the options here.

 

Invoice Finance

 

In the simplest of terms, invoice finance enables business to access cash flow immediately by getting a third-party company like Selectpay to fund their outstanding invoices. There can be a host of benefits such as:

 

Immediate Approval Process:

Unlike traditional bank loans, the invoice finance solution by Selectpay helps you access your unlocked cash quickly and seamlessly. The approval process takes as little as 5 minutes with no financial documentation required up to a $75k approval limit*

 

*Documentation required for limits over $75k

 

Speed & Flexibility:

With invoice finance, you’ll receive the cash you need to pay bills, process payroll, and perform other important tasks immediately. Additionally, the process offers more flexible terms than traditional bank loans.

 

Enhanced Cash Flow:

You’ll have immediate access to the money you need to improve your company’s cash flow, as well as scale your business should you choose to.

 

Traditional Bank Loans

 

Unlike invoice factor solutions, traditional bank loans often require some sort of collateral, such as your business assets, to receive cash. Additionally, there are often exorbitant fees involved and other disadvantages such as:

 

An Extensive Approval Process:

Traditional bank loan approvals often take weeks to months, making it a difficult solution for business needing to address their cash flow ASAP.

High Interest Rates & Fees:

When using a traditional bank loan, you’ll be subject to fluctuating interest rates and bank fees. Depending on the loan, often interest will be chargeable on the whole principal of the loan .

 

Contact us today for invoice finance solutions for small business, and more

 

If you’re looking for an effective way to manage your cash flow, Selectpay can help. Contact us online today for more information or call 1300 566 229.

BNPL for B2B Companies

Buy now pay later (BNPL) for business is becoming increasingly popular nowadays. This is because companies of all shapes and sizes are looking to gain greater financial insight and control of their cash flow processes. It enables merchants to get their cash sooner and customers to receive their goods and services without having to worry about their cash flow.

 

Merchants don’t have to wait for invoices to be processed by their clients. As soon as the client provides the invoice to a BNPL provider like Selectpay, the merchant gets the cash upfront. On the other hand, the customer gets the flexibility to pay for the invoice over a few instalments.

 

We at Selectpay want to talk a bit more about how BPNL for business works and its benefits.

 

What Exactly is BNPL for Merchants?

 

The main takeaway when it comes to BNPL for business is that it gives your client the opportunity to pay your invoice over instalments while, you get paid upfront by a third-party provider like Selectpay.

 

In turn, it gets you the cash you need, without any fees or charges to your business.

 

This can have a host of benefits for B2B companies including:

 

Increased Cash Flow & Flexibility:

When utilising BNPL options for your B2B company’s transactions, you can increase your daily cash flow, making it easier to pay your bills, make payroll payments, and more. It also gives you more flexibility as a business should you choose to scale or begin investing in new products or services.

 

Streamlined Payment Processing:

By enlisting the services of a BNPL company for your B2B transactions, you’ll improve both your payment processing solutions but also reduce administrative burdens for both you and your clients.

 

Risk Management Solutions:

Tracking down late payments can be costly and time-consuming, especially if customers refuse to pay for one reason or another. However, rather than your B2B company taking the risk upon its shoulders so to speak, your BNPL company assumes this risk.

 

Improved Supplier Relationships:

As a supplier, you can improve your relationships with your customers by providing them goods or services ASAP while giving them the option to pay in instalments. As a customer ensuring that your vendors are paid on time by your BNPL provider, you can avoid costly late fees.

 

Contact us today for BNPL for business

 

If you want to reduce the lag between payment processing, streamline your operations, and have the cash flow your B2B company needs to grow, we can help. Contact us online today or call 1300 566 229.