Having working capital is vital to any businesses success, no matter how small or large. Waiting on payments from customers can often create big cash flow issues for businesses and disrupt everyday operation. Financing based on your outstanding invoices or receivables is a great way to alleviate the strain of waiting for your money to come in.
SBG Funding can provide Invoice Financing to any business that has a significant amount of outstanding receivables and is most widely used by businesses that provide their customers the flexibility of net terms. SBG provides a way for you to turn money owed by your customers into available working capital for your business.
Please note: Credit approval, requirements, and actual terms (including actual loan amount and rate), are subject to SBG and its affiliates credit standards and may vary by applicant
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What is invoice financing?
Invoice financing allows you to make use of your uncollected receivables. Instead of having your unpaid invoices collect dust and hold back your business operations, you can use an invoice financing option to advance payments on outstanding invoices. This service allows small businesses to regain control of their cash flow. Business owners get a peace of mind knowing that their funds are only a tap of the finger away.
Which type of invoice financing is perfect for your business?
One of the major things to think about in regards to invoice finance is; how much control you wish to have. They are three common types of invoice financing:
- Invoice factoring
- Invoice discounting
- Selective invoice financing
This is a form of invoice financing which allows businesses to sell their receivables to improve their working capital. The lenders are closely involved. They offer credit control services to make sure customers pay on time. You do not waste your time chasing late-paying customers.
The lender lends businesses money, against a percentage of the value of their outstanding invoices. The business owners then collect the money due from their customers and pay this to the lender. This is more hands-on for business owners since they still have to do their own credit control to make sure customers pay on time.
Selective invoice financing
Also known as single invoice finance or spot factoring, selective invoice is a more flexible type of invoice financing. It allows business owners to pick specific invoices to raise funds against, or even particular customers whose invoices to finance.
Speak to us about invoice financing
Whatever facility you prefer, invoice financing can be an appropriate way to enhance your cash flow situation. We are a leading provider of invoice financing, so feel free to contact us with any question that you might be having.