123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Business >> View Article

5 Reasons Why Smes Benefit From Invoice Finance

By Author: David Andrews
Total Articles: 197

Running a small or medium-sized business can often involve a difficult balancing act. Unlike larger corporations, you probably won’t have the luxury of a dedicated financial department, leaving you with the burden of chasing up customer debts, managing your employee wages and numerous other concerns that take precious time and resources away from the front-line management of your business.

Invoice factoring is a process by which invoices for payment for goods or services you provide to your customers are issued as payable to a factoring or finance company. An agreed percentage advance against the invoice total is then made payable to you straight away by the finance company, who will collect customer debts and pay you the balance minus an agreed service charge.

There are numerous advantages for SMEs, particularly in a challenging economic climate where smooth cash-flow is more crucial than ever.

- Release cash quickly – Most reputable invoice finance companies can provide you with 90% of the sales value of your invoices within 24-72 hours. This means you’re not left waiting around for individual invoices to trickle in, leaving you with the funds you need to successfully develop your business.

- Free up your time – With an Invoice finance company chasing up your customer debts on your behalf, you have more time to focus on the front-line management of your business.

- Reduce administration overheads – By simplifying your financial incomings and outgoings, Invoice Factoring allows you to cut back on the time and resources needed to administrate the financial management of your company, saving you money and allowing you to run your company more effectively.

- An alternative to a traditional bank loan – Invoice Finance isn’t the same as taking out an overdraft or a business loan. Your credit lines automatically grow with your business, without the need for you to negotiate new terms.

- Develop your business – Many companies who use invoice factoring services see a significant increase in their turnover. A major invoice finance company should be well placed to release more funds to you as your company grows.

Whether your annual turnover is £500,000 or £50 million, a reputable invoice finance company could have a major impact on the success of your company. Make sure you do your research though, and only put your trust in a fully accredited, trustworthy brand name. It could be the best decision you ever make for your business.

Hitachi Capital Invoice Finance is a division of Hitachi Capital (UK) PLC, part of Hitachi Ltd, one of the most respected business finance groups. Based in Telford and Goring, it is one of the fastest growing companies; providing confidential invoice discounting and reputable and reliable invoice factoring for small to medium sized businesses through to corporate multi-nationals.

Total Views: 233Word Count: 454See All articles From Author

Business Articles

1. How To Start A Business With Eglobedata’s Transportation Industry Email List
Author: Brayden Tyler

2. Web Design Service Provider
Author: Makemywebsite48

3. Custom Aluminum Cnc Machining Service
Author: 2016hanz

4. Education Top University In Rajasthan
Author: adrianabrainbuxa

5. High Precision Machined Components
Author: 2016hanz

6. Literom As A College Management Software
Author: Mukesh Tiwari

7. Simplifying Gst: Public Awareness Of Massive Gst Evasion Must Start Before Raids
Author: Mohit Yadev

8. Why Is B2b Online Marketplace So Important To Grow Your Business Soon?
Author: Gail Herper

9. Are Evaluations Truly Useful In Deciding Legitimate Movers & Packers.
Author: Saurabhdr

10. Importance Of Using Security Cameras
Author: oursecurehome8

11. Roofing Oklahoma City Has Simplified
Author: Fred Lydick

12. Benefits Of Hiring An Accountant In Meridian
Author: jacktrentcpa

13. How To Choose A Reputed And Professional Charlotte Mold Removal Company
Author: Martintaylor

14. Video Production Atlanta – Video Production Services Atlanta Have Become Enough Competitive
Author: William Brown

15. Thermal Liquid Heaters
Author: heattransferglobal

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: