Cashflow FInance
Cashlfow Finance
Businesses today have access to a variety of working capital and cash flow financial products. The classic overdraft is one of these options, along with merchant cash advances, peer-to-peer loans, marketplace lenders, SaaS cash flow management systems, unsecured lines of credit, and online business loans.
Receivables finance, sometimes referred to as invoice finance, is one option that is gaining popularity. It simply entails selling a company's accounts receivable in exchange for a cash advance.
Therefore, money raised from an invoice finance credit sale can be readily accessed and used to repay creditors.
What are the benefits?
It helps because it is a potent independent business financing facility because:
- The facility grows together with your business as it grows.
- Unlike bank overdrafts, real estate security is typically not required (e.g. your home)
- It is a stand-alone facility that can be used in conjunction with other commercial borrowings (such as overdrafts, term loans, and equipment finance).
- Helps strengthen supplier relationships through prompt payment.