Unlock the value in your unpaid invoices with invoice financing

It's a sad fact of business life that 50% of small businesses fail in the first three to five years of trading. How can invoice finance help small and medium sized business avoid becoming just another statistic?



The single biggest factor responsible for the high mortality rates amongst new small and medium sized businesses is bad cash flow. Small businesses are especially vulnerable to the ebb and flow of finance. If customers start to play hard ball and delay payments or if debtors default then serious trouble could be just around the corner.



It's vital that as well as doing everything possible to keep costs to a minimum, that small businesses are also prepared for the worst when it comes to money owed to them and have contingency plans in place and resources to turn to in the event of cash flow issues. Just ask yourself - what if your biggest customers are late with their payments? How would you cope? You can't continue to operate without working capital indefinitely. Where can a business turn to for financial assistance and what can it do to access the funds necessary to stay in business?



How invoice finance can give you the cash injection you need



If you are running short of funds and are frustrated by having your working profits and your working capital locked in unpaid invoices then there are ways around this. You can, for example, use an invoice finance company to access those vital funds in one of two ways.



Use invoice factoring to sell the invoices to the invoice finance company. They will take it off your hands. Factoring offers a rapid prepayment against your sales ledger, flexibly increasing your working capital and instantly improving cash flow.



Invoice discounting, an alternative to bank overdraft funding is when you borrow money against unpaid invoices that you retain on your sales ledger. Banks aren't the only way to raise funds and unpaid invoices needn't spell disaster - Make invoice finance part of your contingency planning.





Companeo helps SME's decision makers, self-employed professionals and retailers to find products like Invoice Finance.Additionally, large associations and local communities can use Companeo to help find services like Invoice Discounting, managing such activities free of charge.