Table of Contents
1. Requires no collateralTraditional loan products usually require collateral as security guarantee. Invoice financing doesn’t require one. The value of the invoice itself becomes a security guarantee.
2. Instant cashBank loans and other financial arrangements need time before funds can be disbursed. The process of invoice financing is much faster than traditional loans. A business can usually access their requested funds by the next day or two.
3. Improve cash flowBusiness owners can quickly convert up to 80% of their invoices into cash and use the money to run their businesses and cover their overhead costs.
4. As the business grows, loan limit can increaseMost collateral lending is limited by the value of the collateral itself. If the value of the collateral remains stagnant or only rises slowly, then a business cannot get a sizable loan. By contrast, the limit of invoice financing can increase accordingly depending on the invoice value.
5. It is based on a business’ current position, not its historyBank loans and other financing methods typically take a closer look at a business’ history. A new business or a company with slow growth in the past can have difficulty getting approved for a loan. But invoice financing is based on the value of outstanding invoices, making the option suitable for a new or growing business with increasing sales volume and good prospects. Need a quick cash flow fix for your business? Then invoice financing may your answer. Related: Introducing Invoice Financing V2.0 from Funding Societies
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