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Invoice Finance
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What is Invoice Finance?
Invoice finance is the perfect solution for vendors who provide goods or services on credit. This loan enables businesses to use accounts receivables as proof of value that lenders can trust for repayments.
Invoice finance solves the problem of slow-paying accounts receivable for a business. If you are a vendor that sells goods or services at a large scale to customers, you usually do so on credit. This means you do not require the customer to pay immediately for the purchase – the purchasing company is given an invoice indicating the total amount due and the due date. Invoicing is a typical practice between vendors and customers. However, it could result in a lack of cash flow. You’re tying up funds that your company could use for other expenses.
We understand that business owners always need cash flow solutions to meet customer demands consistently. Taking advantage of invoice financing addresses any need for short-term liquidity. Here is where our finance specialists can help obtain invoice finance.
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Invoice Finance Key Features
Invoice financing is a short-term loan extended to business owners based on unpaid invoices. By invoice factoring, a company sells its accounts receivable to boost working capital and inject cash flow. Here are the top features of this loan product:
Invoice factoring. This invoice financing method involves lenders paying the company 70% up to 85% of what the total invoice value states. The lender collects customer payments, which will make them aware of the financing agreement. Assuming the lender receives full payment, it will remit the remaining percentage amount to the borrower, with additional fees and interest for the service.
Invoice discounting. This invoice financing method keeps the payment collection between the business and the customers instead of the lender getting the payments. Lenders can advance up to 95% of the invoice value. Invoice discounting also provides additional benefits like debt collection and managing the sales ledger, with additional charges.
Both these methods generate instant cash for your business once you apply for it. The invoice balance minus bank charges and interest are paid as soon as the customers settle their invoices.
Do you think invoice finance will help your business?
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Why Do Lenders Offer Invoice Finance?
Lenders view invoice financing as a more secure option than, say, extending a line of credit because invoices serve as collateral. Other types of business loans are unsecured and leave little recourse if the company cannot repay. Whereas in invoice finance, the lender can facilitate collecting the payment using the customers’ invoices. Lenders also reduce risk by not advancing the whole invoice amount to the borrowing vendor.
Our team at Intellichoice streamlines business financing, and we are here to source the best invoice finance lenders for you. Book a free consultation with our brokers today.
Talk to us about invoice finance
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Benefits of Invoice Finance
Outstanding sales invoices don’t have to derail your operations. Intellichoice provides custom invoice finance packages for small and medium-scale companies turning over $200K to $10m per annum. Let our certified financial brokers get a fitting lender on board.
Ready to scale your business with invoice financing?
- Better breathing room. Using invoice as collateral eases the administrative strain of chasing customer payments. Business owners can concentrate on other creative and growth-focused tasks.
angle - Easier to take on new business. When companies know they aren’t at risk of late or missing payments, it becomes considerably simpler to acknowledge new business contracts that will ultimately benefit the bottom line.
angle - Enhances cash flow. Because outstanding invoices become collateral, invoice financing can put companies in a much sounder financial position.
angle - Scale your business. Other financing (e.g., business overdraft) have less flexible terms, which won’t benefit vendors looking for a flexible solution. Invoice finance matches the sales and growth potential of your business.
angle - Fast process. Invoice financing agreements usually take faster than other business finance products.
- Better breathing room. Using invoice as collateral eases the administrative strain of chasing customer payments. Business owners can concentrate on other creative and growth-focused tasks.
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Why Partner with Intellichoice?
Invoice finance solves a business’ concern when it comes to delays in customer payments. Keep your cash flow steady and continue mounting you’re business by maximizing our convenient process. Intellichoice has proprietary loan estimations to determine which terms benefit you. We make the lender and borrower interaction as precise and smooth as possible.
With our expert brokers, your business can access a wide network of lenders with comparable financing options. We’re here to break down each loan product and help you understand the nuances of financing agreements, fee structure, repayment, and risk assessment. Intellichoice secures financing that meets your unique goals and objectives.
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