Small & Meduim Businesses are on a constant persuit to get the payments from the customers at the earliest.
Adequate cash flow plays key role in Sourcing Material in time & at competitive rates. Extending expected credit period to Customers helps Customer Retention & better rate realisations for any Business. Sounds Simple ! Still a struggle for the SME Businesses.
Invoice Financing Offers great support in meeting these objectives. It provides much required funding support to sustain, grow & make the Business more self-reliant.
How does It Work:-
- Enter into Invoice Financing arrangement with a reliable Service Provider.
- Submit your Invoices approved for Payments by your Customers to the Service Provider.
- Service Provider shall pay about 70% to 90% of the Invoice Value upfront at an agreed service charges/rate.
- You get the balance payment upon receipt of payment by service provider from the customer.
Though the cost of Invoice Financing is higher than traditional Bank Facilities, It has its own advantages too. The Invoice Financing Facility is generally collateral free/ unsecured except charge over the Invoices Financed by the Service Provider. It’s much faster to get the facility set up & operationalize. It’s more flexible than the traditional banking facility.
Invoice Financing is an efficient way for any SME to raise funds against Invoices raised on any Creditworthy Customers of almost every industry.
#Invoice Financing facilities also known as #Invoice Discounting, #Bills Discounting, #Receivable Financing is an important source to meet working capital needs of SME Businesses.
To Learn how Invoice Finance can help your business connect with Loancart team for further assistance.