The execution of a small or medium business can often involve a difficult balanced activity. Unlike large companies, you will probably not have the luxury of a dedicated financial service, leaving you the burden of pursuing customer debts, managing your employee salaries and many other concerns taking times and resources Precious management of the front line line. of your company.
The factoring of the invoice is a process by which the payment invoices of the goods or services you provide to your customers are published as payable to a factoring or financing undertaking. A progress of the agreed percentage against total invoices is then carried out immediately by the financial corporation, which will collect customer debts and you will pay the balance less an agreed service charge.
SMEs have many advantages, especially in a difficult economic climate in which the smooth cash flow is more crucial than ever.
– Free species quickly – the financing companies of good reputation invoices can provide you with 90% of the value of sales of your invoices within 24 to 72 hours. This means that you are not waiting for individual invoices to find yourself with the funds you need to develop your business successfully.
– Free your time – With an invoice financing company, you continue your customer’s debts, you have more time to focus on managing the first line of your business.
– reduce the general costs of the administration – by simplifying your entries and financial expenses, the factoring of the invoice allows you to reduce the time and resources necessary to administer the financial management of your company, which allows you to ‘Save money and allow you to run your business more efficiently.
– An alternative to a traditional bank loan – Finance Finance is not the same as to delete an overdraft or a commercial loan. Your lines of credit automatically increase with your business, without negotiating new conditions.
– Develop your business – many companies that use billing factoring services consider a significant increase in their turnover. A large bill of financing the invoice should be well placed to publish more funds as your company grows.
If your annual turnover is $ 500,000 or £ 50 million, a renewal invoice financing company could have a major impact on the success of your business. Make sure you do your research and do only put your confidence in a completely accredited and trustworthy brand name. It could be the best decision you ever brought to your business.