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.

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.
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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.

Invoice Finance is the Solution to Help Your Business Grow

If your business is growing, adding new employees, bringing new products and services to the market, and growing its client list, you don’t want anything getting in the way of that growth, especially cash flow challenges.

To manage the risks of cash flow challenges, invoice finance has emerged as a leading solution for businesses.

 

What is Invoice Finance?

Businesses of all sizes from start-ups to large enterprises often turn to invoice finance when they need to scale their operations quickly but don’t have the cash to do so. Invoice finance is a form of short-term borrowing that these businesses can use to cover the costs of purchasing goods and services from suppliers or to manage their operating cash flow.

 

There are three main categories of invoice finance:

 

Invoice Factoring

Factoring helps companies raise money against invoices. Once the company is provided with the money the lender takes on the responsibility of collecting the money from their clients and customers.

 

Invoice Discounting

A business can use invoice discounting to raise funds against unpaid accounts and instantly get paid for part of the invoice thus helping the cash flow. Once the finance is secured, you need to ensure payments are made by clients and customers.

 

Selective Invoice Financing

Companies have the option of choosing the best type of finance for their business. With selective invoice financing, a business can borrow money against specific invoices. This offers a more targeted solution for businesses that have a high percentage of invoices that are paid on time.

 

Benefits of Invoice Finance for Business

Managing working capital is one of the most important steps a business can take to ensure its growth. Invoice finance offers a number of benefits for businesses such as:

 

  1. Rapid Growth

Many businesses turn to invoice finance to help them grow quickly. With the help of lenders, businesses can access the funds they need to purchase goods and services and expand their operations. They should have an invoice finance partner that is willing to scale their solution with the company in order to help grow your business.

 

  1. Fixed Costs

With invoice finance, businesses can eliminate the need to borrow money against future sales or income. This means that the funds available for growth are not contingent on future financial performance.

 

  1. Short-Term Funding Solutions

A long-term commitment isn’t necessary because invoice financing is a short-term funding solution with maximum flexibility.

 

Implement Invoice Finance for Business with Selectpay

At Selectpay, we understand the importance of invoice finance for businesses. We are a leading provider of invoice finance solutions, and we are here to help you get the most out of your investment.

 

We offer a variety of B2B financing options that are designed to meet the needs of your business. With our flexible terms and easy access to the funds, you’ll get all the support you need to grow your business.

 

Contact us today to learn more about how we can help your business get the invoice finance solutions it needs to grow.

 

How to Solve Cash Flow Management Challenges

All businesses must generate cash flow to meet their operational costs and grow. The two most common ways to generate cash flow are to generate revenue or to reduce expenses. Unfortunately, most businesses struggle to generate enough revenue or to reduce expenses in a cost-effective way. Luckily, there are a few other things businesses can do to optimize cash flow management.

Here are some of the best ways to solve cash flow management challenges.

What is cash flow?

Cash flow is the money that a business generates from its operations. It is important to manage cash flow because it is the source of funds that a business uses to pay its bills and grow.

Why Cash Flow Management is so Important

Managing cash flow is essential for a number of reasons. First, cash flow is the source of funds that a business uses to pay its bills. If a business doesn’t have enough cash flow, it won’t be able to pay its bills on time. This can lead to financial instability and other challenges.

Second, managing cash flow is important for growth. A business that has enough cash flow can invest in new projects and growth initiatives. This will help the business grow faster and reach its goals sooner.

Third, managing cash flow is important for financial stability. If a business manages its cash flow well, it can help keep their debt levels healthy and create a sustainable financial future.

Cash Flow Management Tips

There are several ways to manage cash flow. They are:

1. Plan your budget carefully.

One of the best ways to manage cash flow is to plan your budget carefully. This will help you identify what expenses are necessary for the business and what are luxury items.

2. Reduce expenses where possible.

Another way to manage cash flow is to reduce expenses where possible. This will help your business save money and increase its cash flow.

3. Implement cost-effective measures.

Some of the best ways to manage cash flow are to implement cost-effective spending measures. For example, a business can use software to manage its expenses. This will save the business time and money and free up time for personnel as well.

4. Choose a funder that will grow with your business.

Select a funding option that will work with your business in the long term. They should have the solutions you require and the ability to grow with your business over time to match your funding needs.

Solving Cash Flow Management Issues with Selectpay

At Selectpay, we believe that buy-now, pay later and growth finance can play a critical role in solving cash flow management issues. We offer short-term funding solutions that can help businesses manage their finances more effectively. With buy-now, pay-later solutions, you can manage your cash flow more easily by spreading the cost of supplier invoices over time.

Get started with Selectpay today and contact us.

Here’s How Invoice Finance Companies are Saving SMEs

With the current climate of tighter lending, what options are available to small businesses? One option is to invoice finance companies. These companies help small businesses by lending them money against their invoices, which can help them get access to the capital they need to grow. Here are some of the benefits of using an invoice finance company for your SME.

 

Invoice Finance Ratios Rising

In Australia, invoice finance volume currently sits at about 3.9% of GDP, but in the UK, that number is closer to 19%. Companies are benefitting from a new way of managing cash flow and accessing capital to help maintain growth in a competitive landscape.

 

Funding an SME and operations can be a challenge under any circumstances, but it is especially important when the main focus is growth. Similarly, cash flow management is especially more important when the cash flow is tight. During these circumstances, SMEs must pay close attention to how much they spend, as well as when they spend it.

 

Invoice Finance Can Help Small Business Access Capital

One of the biggest benefits of using an invoice finance company is that it can help you get paid today, while your customer pays in line with your usual payment terms. This can be a critical piece of the puzzle for businesses looking to expand their operations or invest in new technology.

 

Invoice Finance Can Help Reduce Debt Loads

Another big benefit of using an invoice finance company is that it can help reduce debt loads. This is especially important for businesses that are also paying back loans they took out to finance their operations in the past.

 

Invoice Finance Can Help Business Manage Cash Flow

A final major advantage of invoice finance is that it can help business manage their cash flow. This helps in times of tight fiscal conditions, especially when businesses need to find ways to reduce their spending and get paid quickly.

 

Why Invoice Finance is Perfect for SMEs

SMEs have unique needs that are a perfect candidate for a service like an invoice finance. They often have a shorter timeline for paying back loans, and they need access to more capital more frequently than larger businesses. By using an invoice finance company, SMEs can get the money they need to grow and prosper in today’s economy.

 

By using this service, businesses get paid upfront and customers can pay in line with their existing payment terms. Your business gets 85% upfront minus the fee, and once the client has paid, you receive the balance of the invoice.

 

Implement Invoice Finance with Selectpay, Australia’s Leading Invoice Finance Company

If you’re looking for a way to access the capital you need to grow your business, look no further than Selectpay. Our team of experienced finance specialists can help you get started with invoice finance today.

Contact us now to learn more about our options and let us show you how invoice finance can help grow your business!