If you’re a small business operating in the UK, or a medium sized enterprise that’s looking to grow in the coming year, cashflow may be holding you back. Stop right there! Chances are, you’ve heard of invoice factoring but have you heard about small business industry discounting? Invoice discounting is a great way to enjoy stable cashflow while growing your business or expanding into new markets this year. So what’s it all about?
Invoice Factoring or Invoice Discounting: What’s the Difference?
Whether you’re running a small recruitment agency, you’re the owner of a medium sized construction company or manage a haulage firm; all small businesses have one thing in common. The need for stable cashflow! Having a steady stream of cash coming into your business makes it easier for you to meet your commitments, such as paying contractors and suppliers in a timely fashion, making payments to HMRC, purchasing supplies and paying for operating costs (such as fuel for your haulage business vehicles).
Invoice factoring is ideal if you’re looking for a low-risk way to inject some cash into your business, and it’s becoming an increasingly popular option. Your factoring company releases funds tied up in your unpaid customer invoices, effectively lending you up to 90% of the value of these invoices. You’ll usually receive the money in your bank account within 24 hours, and the factoring company remains responsible for chasing customer payments when they become due.
When payment is received, you’ll be paid the remainder due to you, minus a small fee for the factors’ services. So what’s the difference between invoice factoring and small business industry discounting? Well, with invoice discounting, you stay in control of your customer relationships.
How Small Business Industry Discounting Could Help Your Business
Maintaining good customer relationships is the key to running any business – even more so when you’re running a small business and looking to grow. Unlike invoice factoring, invoice discounting doesn’t hand over control of chasing customers for invoice payments to a factoring company.
SMEs Grow Faster With Invoice Discounting
If you’re looking to expand into new markets or grow your business in 2018, invoice discounting is the ideal way to boost your company cashflow. Unlike a bank loan, which small businesses may struggle to be approved for, invoice discounting is a low risk means of borrowing. Plus, you’ll never borrow more than you can afford to pay back. You’ll be able to take on bigger and better contracts, moving from one project to the next without waiting 30, 60 or 90 days for customers to pay your invoices.
Whatever type of business your run, invoice discounting could boost your cashflow. If you’re keen to find out more about how small business industry discounting could help your company grow this year, why not get in touch? We work with a wide range of factoring companies across different industries, so we can match you with the right company for your needs. We’ll be able to answer any questions you have and fill you in on the benefits of invoice discounting for your small business
For free, no-obligation advice, just pick up the phone and call us today on 0330 134 2826, or drop us an email at firstname.lastname@example.org and we’ll get back to you.