Any business owner will be familiar with the situation – the end of the month is approaching, employee salaries and property fees require payment, but you haven’t yet received the funds from a number of outstanding invoices. While a 30-60 day turnaround on invoice is supposed to be standard, statistics show that the average invoice under £1 million takes 71 days to process.

Are you a business looking for a method to increase cash flow and speed up access to money owed to you? Then invoice financing may be an option for you and your business. Invoice financing is where a business borrows money based on the amount due from the unpaid invoices from their customers. By doing this, cash can be accessed straight away rather than waiting for the invoice to be paid by the client. This quicker access to monies owed may allow you to grow your business quicker and alleviate any cash flow issues.

There are different forms of invoice financing known as invoice factoring whereby a third party company collects your outstanding invoices, or invoicing discounting where you collect the invoices yourself. This article will look at the ways invoice financing in general can be used to support your business.

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