How Invoice Finance can get your business on the right track in 2022

2021 has been another challenging year, with businesses still facing decreased sales and demand, staff shortages and new ways of working. Though the pandemic continues, many people are taking a more positive approach to 2022 and looking forward to the opportunities it brings.

For many directors and owners, a new year can mean a new approach to business and in this can come the desire to reshape and reconsider the financial position of the business. It may be that they look to alter their current external funding solution or perhaps it is a new avenue to explore. It can be daunting for those looking to step out into something new, whether it be a new lender, new funding solution or being completely new to any sort of external financing. With so many options out there, it can be difficult to know what the right option is for your business.

If you’re looking for a solution that gives you immediate access to money owed to you, otherwise locked up in outstanding invoices, then Invoice Finance could be perfect for you.


How does it work?

Invoice Finance is a flexible solution that offers you upfront access to money tied up in outstanding invoices from your customers. The aim is to bridge the cashflow gap when waiting for your customers to pay you – which can often stall businesses in starting new orders or contracts. Imagine what it would be like if you didn’t have to wait 30, 60 or even 90 days to be paid by your customers! With Invoice Finance, you can focus on gaining new business without the restraints of limited cashflow.

There are various forms of Invoice Finance, including Invoice Factoring and Invoice Discounting. The primary difference between the two types of Invoice Finance is that Invoice Factoring involves the funding partner chasing customer payments on your behalf and Invoice Discounting means you remain responsible for collecting customer payments. The benefits remain the same – quick access to your money.


So how can Invoice Finance help my plans for 2022?

A consistent and fluent cashflow is key to your business’s growth and ability to plan ahead. It helps with growth by allowing investment, funding new equipment and purchases and increasing wages to help you attract and retain talent. A stable cashflow allows you respond to problems quickly and with readily available working capital.

Having the reassurance of a stable and predictable cashflow can provide incredible benefits to your ability to think strategically, plan ahead and take calculated risks to grow your business.

What Invoice Finance does is plug this cashflow the so that your businesses can operate as normal, without the restraints of an inconsistent cashflow cycle. The flexible solution offers businesses immediate access to funds locked up in outstanding invoices instead of waiting 30, 60 or even 90 days for their customers to pay them. It allows them to focus on developing and investing in the business and looking forward instead of backwards.


Take next step…

If you’re looking for a flexible solution that will support your business journey in 2022, we offer a range of Invoice Finance options, tailored to each individual business.

 

Take a look at the funding options below:


Don't just take our word for it... see what our client have to say about our Invoice Finance service on our Funding Stories page.