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: 265Word Count: 454See All articles From Author

Business Articles

1. The Best Way To Best Finance Courses
Author: ponting brown

2. Union Packers And Movers India In Bangalore Charges
Author: Google

3. Things You Should Seek In Your Building Supplies Melbourne
Author: Lucas Smith

4. Leslie Waterworks Purification Technology
Author: Leslie WaterWorks

5. Home Water Cooler New York
Author: Leslie WaterWorks

6. Construction Sector To Push The Acoustic Sealants Market Revenue To $1.6 Billion By 2023
Author: Ankur

7. Wedding Rings Melbourne
Author: Wedding Rings Melbourne

8. Dlf Promenade - Places To Visit In Delhi For Kids
Author: DLF Promenade

9. 7 Tips For Road Safety On Long Haul Mc Truck Jobs From Sydney
Author: 1800 Drivers

10. Top Material Handling Equipment Company- Ace Cranes
Author: acecranes

11. Asset Recovery Services
Author: Asset Recovery Services

12. Hr Is Pivotal To Human Capital Management
Author: NetZealous LLC, DBA TrainHR

13. Best Seo Agency In The World
Author: Jagjit Kaur Rattanpal

14. Ways To Generate B2b Sales Leads
Author: Jagjit Kaur Rattanpal

15. Togbok: Rapidly Talk With Friends
Author: barry

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