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!