Inventory Finance

Invoice Finance it is simply the use of outstanding debtors/accounts receivable to raise working capital and it is not a loan. It is suitable for any businesses that have unpaid invoices. It gives you quick and easy access to money owed by customers and helps with fluctuations in your cash flow. Help manage everyday business expenses it is a strategic method to grow their business.

How does Invoice Finance Work?

As your business delivers its goods/services to its customer, the invoices raised may be sold to a financier freeing up to 80% of their value almost immediately. The remaining 20% is advanced monthly based on collections. The business simply forwards copies of the invoices to the financier. Funds are advanced. The client controls over accounting functions and collections and the important relationships they have with their customers.

Invoice factoring is similar to invoice financing in that you still receive up to 85% of the invoice upfront from the lender. However, in contrast to invoice financing, invoice factoring involves actually selling your invoices to a third-party. Invoice factoring companies will collect the full amount of the invoice from the customer on your behalf. Invoice factoring provides short-term working capital in exchange for selling and assigning invoices to a factor. It is not the same thing as invoice financing (or accounts receivable financing), although the terms are often used interchangeably. Invoice financing is more streamlined, easier to use, and doesn’t require the assignment of invoices like factoring does.

inventory finance
Best Inventory Loans for Your Business 2019 Are you a small business owner in need of financing? Are you fed up with stuck-up Australian banks that make you go through hoops to get it? Then it is time to go all in with Inventory Loans. Considering the small business division utilizes almost a large portion...
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what is inventory finance
What is Inventory Finance It is designed to pay your supplier directly on your behalf allowing you to meet your financial obligations while keeping your shelves supplied and your business’s reputation intact. It provides businesses with the finance for purchases of inventory for manufacturing or resale for your customers. It is a good way to...
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Pros and Cons of Inventory Finance - intellichoice
Obtaining inventory finance can be a great way to keep the work in progress running especially for small or new businesses that do not have a credit history or have had some trouble with their credits in the past. It does not only help the business in keeping a backup inventory but it also provides...
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The concept of inventory financing is based on the simple principle of improving your business ability to pay the suppliers for the smooth generation of inventory. Since most of the work done by the firm is on credit basis, you have little time in which you receive payments for your sales and pass it down...
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