The Advantages of Invoice Finance

Many companies, from the smallest home businesses to the largest corporations, are often frustrated when it comes to their cash flow. If you invoice on 30, 60 or even a 90 day basis, you'll find that you're waiting a long time to be paid for your services. You might have piles of outstanding in voices, so not only does this cause a problem when it comes to the cash in your bank account, it means that you have to spend time and effort chasing payments.
Increasingly, both small and large businesses are using invoice finance to solve these problems. This involves turning your outstanding invoices into cash using a factoring company. In short, you give your invoices over to the factor, who gives you back a cash amount (a proportion of the invoice less their fees). The factoring company now has rights to the invoice, and it's their job to collect payment from your client.
The main advantage of invoice financing is that it releases money from your invoices in as little as 24 hours. You don't have to wait for months to get paid. Even though you don't receive the full amount of the invoice, because the factor takes a fee, the convenience of being paid quickly is very often worth being paid slightly less. The second advantage is that you no longer have to chase your own payments, the factor does this on your behalf. This can actually save you money because you no longer have to manage your own payment ledger.