- 27 Mar
Short Term Invoice Finance
Many companies are not aware that you can use invoice finance on a short-term basis. There are facilities available that are of an ongoing nature, for long term use, but there are also short-term invoice finance facilities that allow you to use the service for as little time as you feel you need to.
Short-Term Invoice Finance
Invoice finance works by releasing a proportion of the value, of your credit sales invoices, immediately that you raise them Therefore, you don’t have to wait for your suppliers to pay, before you can use that money. Short term invoice finance is a facility that has no obligation for you to continue to use the facility.
Seasonal Trading, Large Orders & Creditor Payments
This could be particularly helpful if you have a short-term cash flow issue. It may be that you are a seasonal business, and you have a period of the year when your cash flow gets very tight. During these periods, you could use invoice finance to release the cash that is tied up in your outstanding invoices. You can then use this money for any purpose e.g. paying suppliers for raw materials, paying staff wages or meeting regular overheads. The service is very flexible in that you can select either individual invoices to raise funding against, or you can select particular debtors and fund against all of their invoices.
Alternatively, you may be taking on a single large order, and need financial help in order to finance the fulfilment of that order.
It may be that you just have a one-off large creditor position that you need to settle quickly. This could be a VAT payment that needs to be made, or a payment to a trade creditor who has put your account on stop.
You could be a new startup business that doesn't want to have any kind of ongoing commitment to a funding service, but could use the additional working capital generated by an ad-hoc funding arrangement.
Stopping The Service Without Charges
Once your cash flow requirement subsides, you could then stop using the service without any obligation to use it ever again. In addition, you would not incur any further fees if you chose not to continue.
Find Out The Costs
If you would like more details about the availability of finance for your company, and a free, no obligation, quote search to find out the costs, please contact Sean on 03330 113622 to discuss short-term invoice finance.