make money? Invoice factoring, can help your business grow or expand. If you find yourself low on capital, invoice factoring can release a cash flow. And, if you lack the administrative resources to pursue invoice payments, then invoice factoring can resolve that problem too.
Invoice factoring is a big tool, to help keep your company’s assets liquid, raise capital and save time.
Inspired Quotes can negotiate better terms with financier suppliers who offer invoice factoring services.
Here’s how it works:
1. The finance provider typically buys around 85% of the value of the raised invoices.
2. The finance provider will collect the sum of the sales invoice and once received, they pay the remaining balance to your business.
3. You pay the finance provider the pre-arranged fee (and any interest if applicable).
Here’s an example of how it works: If your customer owes you £30,000, you sell the invoice to a finance provider for £25,500 [85%]. The finance provider collects the £30,000 debt from the customer on your behalf and pays you the remaining £4,500. You then pay any fees and interest that you have agreed. This means that you get access to your invoice value immediately and then the remainder once the customer has paid.
To find out how your business could benefit from Invoice Factoring, register today.