How Invoice Financing Can Help Business Owners
Societies is happy to announce the launch of our newest product: Invoice
Financing. As an introduction, invoice financing is a product where sellers (“Borrowers”
in this case) sell the future receivables or invoices they issued to their
customers (“Debtors”) to get immediate cash.
the concept further, say there is a business owner and a buyer. The buyer
purchased goods or services from the business owner and was issued an invoice
with a credit term of 60 days. This means the business owner will only receive
payment after 60 days, at the earliest; but what if the business owner needs
immediate cash? This is where invoice financing comes in. Business owners can
sell their invoices at a discount, in exchange for immediate cash, thus
enhancing cash flow.
wisely, invoice financing can be a fantastic tool for business owners. The
process of getting upfront cash through invoice financing is significantly
quicker than applying for a loan from a traditional financial institution. This
is especially useful for business owners who need a quick cash flow fix. Perhaps
he has the opportunity to fund business growth but most of his short-term
assets are tied up in accounts receivables – he can apply for invoice financing
and does not have to wait till the end of the credit term to get cash.
at Funding Societies, we can advance an immediate loan of up to 80% of the
invoice value at interest rates as low as 0.67% a month. We charge no
processing fee for the loan application and approval process, only a
competitive fee upon successful disbursement.
first time Funding Societies borrowers, it would take three to seven business
days from application to disbursement – a process that is relatively quick and
already includes a compliance check. Repeat borrowers are in luck: the
assessment, approval, and disbursement process takes merely one to two business
in learning more about our invoice financing product? Refer to our infographic
below, or contact us to find out more!