Advantages of Invoice Discounting

Managing your business cash flow is never easy. It is like juggling ten balls while standing on one foot. One is bound to drop at some stage.

Careful management of the cash in your business can be the difference between survival or shutting down permanently.

There is more pressure these days on companies to pay their invoices later and later, with some extending payment dates to 60/90 or even 180 days.

This is a cause for concern for smaller businesses that need to cover the orders while still waiting for the payments to happen.

That is where Invoice Discounting can help your business survive.

Invoice Discounting bridges the gap between the order being delivered and the payment date, which is usually between 30 and 180 days later.

Here are some advantages of Invoice Discounting:

Get immediate access to the money without needing a loan.

While traditional loans are debt that usually need to be carried on the balance sheet and have monthly interest charges attached to them, invoice finance does not require long term contracts. You can get access to the cash earlier than the payment date.

Grow your business

So often companies cannot take advantage of larger tender’s or jobs as they don’t have the access to the cash to fulfill the order. Invoice Discounting can help grow your business by giving you access to the cash earlier, so you can take on more contracts/tenders without having to wait for the payment to reinvest the cash.

Choose what you need and when

Not all invoices have to be discounted. You can select which ones you need to discount depending on your cash flow needs.

Reduce the risk of bad debts

By ensuring you have cash flow and don’t incur bad debts, you can keep your business name in the clear. This bodes well when you need to raise capital or take a business loan in terms of approvals, interest rates, and repayments.

Reduce cash flow tied up in invoices

By increasing your business cash flow during the month, you can continue to operate your business, buy stock, and even pay staff, without concerning yourself with the cash that is tied up in invoices.

Bizcash Invoice Discounting

Selective Invoice Discounting allows you to get paid immediately for the products provides, get the cashback into your business faster, and increase turnover and profits.

For more information on the Bizcash Invoice Discounting product or to apply, click here