If there’s one thing small business owners wish they had more of, it’s time. Oh, and money too. Managing your cashflow as a small start-up can be a real challenge, as can ensuring you have enough time to grow your business and hunt down new clients, staying one step ahead of your competitors. Luckily, invoice discounting can help you to do all these things, making your life easier. Here are just some of the benefits of invoice discounting for small business.
The number one benefit invoice discounting provides for small businesses and start-ups is improved cashflow. But what does that actually mean? Well, the next time you’re waiting around for clients to pay their invoices or chasing down a late paying client, stop and think about invoice discounting. Like invoice factoring, it enables you to free up the funds in your unpaid invoices, so you don’t have to wait around for clients to pay.
Your invoice discounting company can usually release up to 90% of the funds in your unpaid invoices within 24 hours, straight to your bank account. Once the invoice is paid, they’ll take a small cut for their fees and release the remainder to you. Having stable cashflow not only makes it easier to meet your obligations, like paying your staff and your tax bill, it also means you can grow your business and expand into new markets, without waiting around for payment from existing clients.
Better Client Relationships
Client relationships are the key to success, particularly when you’re a small business offering a personalised service. By handing control of your client relationships over to an invoice factoring company, you could find that you also lose control of the standard of service your customers are receiving.
For small business owners who take a hands-on approach to their business, invoice discounting for small business is the ideal choice. With invoice discounting, you enjoy all the same benefits as invoice factoring whilst still taking responsibility for chasing clients for payments. This means you’re totally in control of which clients are chased for payment and when, which means you can be sure your customers are receiving the very best service.
No Extra Debt with Invoice Discounting for Your Small Business
Bank loans, overdrafts and company credit cards may be quick ways to release extra funds to help you grow your business or meet your immediate commitments but taking on extra debt can be bad news for your small business.
With invoice discounting, you’re never borrowing more than you can afford to pay back, as you’ll only release funds already owed to you by your clients and customers. This means invoice discounting is a low risk way to improve your small business cashflow!
There are plenty of other benefits invoice discounting can bring to your small business to. If you’d like to find out more, why not give Simply Factoring Brokers a call today on 0330 134 2826 for no-obligation advice. Or if you prefer, email us at firstname.lastname@example.org and we’ll get back to you.
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