What is Invoice Finance for Business & How Does it Work?

Maintaining cash flow and keeping up with payroll and other expenses, in addition to managing a business can often seem a little overwhelming. Especially small business, struggle with streamlining cash flow and payment processes, which is why many turn to an invoice finance business like Selectpay for help.

 

Here we offer some insight into invoice finance for small businesses and its benefits.

 

What Exactly is Invoice Finance?

 

In the simplest terms, invoice finance enables B2B providers to remain afloat by receiving cash advances on customer purchases, using their invoices as a form of collateral. For many businesses, invoice finance offers an easier and more reliable solution than applying for bank loans, which often require a portion of your business as collateral and can often take months to be approved.

 

How it Works

 

The invoice finance process is quite simple. Lenders will advance a sizeable portion of your outstanding invoice amount, then when that invoice is paid your business receives the remaining portion from the outstanding invoice. In most cases, invoice finance companies will charge a flat fee of the invoice value, although this percentage may vary.

 

Benefits of Invoice Finance for Small Business

 

For small business, invoice finance has a host of advantages including:

 

  • It’s Efficient: As mentioned above, applying and receiving approval for a bank loan can sometimes take months, whereas invoice finance offers an immediate solution for cash flow issues. In many cases, as little as 24 hours.

 

  • Ideal for B2B Companies: Companies that are B2B or experience a seasonal fluctuation in business and need to scale back, when necessary, will benefit from invoice finance. This is because it alleviates cash flow issues caused by unpaid invoices and enables businesses to keep up with vendor payments.

 

  • Ideal for Businesses of all sizes: Whether you’ve only been going a year and have a small turnover, or you are well established and turnover millions there is an invoice finance service to suit you. Whether it’s to manage temp payroll, fund large projects, purchase stock or simply stabilise cash flow invoice finance has got you covered.

 

Contact us today for more info about our invoice finance solutions!

 

Learn more about invoice finance for small businesses and buy now, pay later services by contacting us online today or calling 1300 566 229.

5 Benefits of Buy Now, Pay Later for Business

When you’re a business struggling to keep ahead of the competition and remain profitable, your cash flow processes are likely at the forefront of your mind. Although it isn’t always easy, there are a host of solutions when suffering from cash flow issues, the leading being buy now, pay later (BNPL) services for business and merchants.

 

Here were go into five of the leading benefits the BNPL for business solutions from Selectpay can offer you!

1. Incremental Sales

 

One of the leading advantages of using BNPL for merchants is that it can enable your business to offer incremental sales without having to suffer financially if customers fail to make their monthly payments on time. Offering sales in instalments can help attract new clients and employing third-party BNPL solutions means you receive the money upfront without having to worry about tracking down late payments.

 

2. Improve Your Customer Base

 

As mentioned above, BNPL is a great way to improve your customer base because customers concerned about product/service prices can easily convert their payments into easy monthly/weekly instalments.

 

3. Inventory Oversight

 

Maintaining a clear view of your inventory, when you need to restock, and what items are selling best is key to keeping your business successful. BNPL for business services can help provide more insight into your inventory at the granular level by providing B2B business with the opportunity to buy in larger amounts, which prevents excess stock and greater oversight.

4. Optimise Cash Flow

 

Cash flow is what your business relies on to pay its bills, payroll, and other unforeseen expenses each month and BNPL solutions can help optimise it. You’ll receive the cash from all orders upfront, whether it was purchased via instalments or in bulk, meaning you’ll never have to worry about not having enough in your rainy-day/payroll fund to cover expenses.

5. Build Long-Term B2B Relationships

 

BNPL solutions help you build long-term relationships with your customers by making the payment process easier and providing them with more payment options. It will communicate to them that their business is important to you and you’re doing everything you can to serve their best interests.

 

Contact us for BNPL for business and merchants today!

 

Selectpay will work with you to find the right BNPL solution for your business. Additionally, we also offer invoice finance solutions, so contact us online to learn more or call 1300 566 229 today!