- 31 Mar
The Cost Of Using An Invoice Auction Site
We have access to invoice auction sites for clients that want to fund their invoices in this way. The client posts one or more invoices onto the invoice auction site and seeks bids from funders to provide funding against those invoices.
Clients are often interested to understand the cost of using an invoice finance auction site and one invoice auction site has recently published an average cost for funding invoices for each 30 day period.
The average cost of funding invoices via the invoice auction site was 1.44% for each 30 day period.
This may be an attractive cost, particularly if a client is looking for very short term funding without the minimum periods and termination periods associated with traditional forms of invoice finance. This could help with a seasonal requirement for funding or it could assist a business that had a temporary cash flow issue. Similarly, a business could have a one off large order that they needed to finance.
Where clients are looking for longer term funding, a traditional whole turnover invoice finance arrangement may prove more cost-effective however there is clearly a place for both products.