An invoice finance broker can get ensure your business gets an upfront amount of your invoices before they’ve been paid. If your business operates in an industry where offering credit and trade accounts to their suppliers are commonplace, invoice finance could be good for you. Credit accounts allow you to increase the growth of your business as you give customers who can’t pay upfront costs the opportunity to pay once they have made money from your supplies.
However, offering credit can often lead to cash flow issues for your business. Your business may stagnate as it does not have the funds to reinvest into the company or it could even mean that you have difficulties paying staff and suppliers on time leading to more serious business difficulties. Invoice financing offers allows you to borrow based on the amount due for your outstanding invoices. The lender then takes a percentage of your invoice as a fee for their services.
Taking it upon yourself to find a suitable invoice finance broker can be a time-consuming affair, which may lead you to taking on an unsuitable lender. This could happen out of time constraints or simply because you don’t have the knowledge to understand which lender is offering the best deal.
If your business does not have the capabilities to sustain a large finance department in-house then using an invoice finance broker might be the best option for you. Brokers have a better understanding of the most suitable lenders and will take the time to understand your business offering a personal and tailored service, meaning that they are best suited to finding you the best possible deal.
A broker understands the jargon and pricing structures that lenders will employ and will provide guidance to your business helping you understand what exactly each deal means. Finally, brokers provide on-going support ensuing that your finance solution is providing your company with a rewarding outcome.