Pro’s and Con’s

Invoice finance provides companies like yours with a number of advantages and can provide an immediate cash flow boost for your company. A healthy balance of cash is a huge asset to all companies who require working capital to move forwards.

We have put together a list of potential advantages and disadvantages when considering an invoice finance facility for your business:

Advantages

• An immediate cash injection for your business of up to 90% of the amount of invoices owing.
• The cash you need to implement your plans and strategies
• competitive rates and terms
• Enables you to make the most of your valuable time and resources driving the business forward rather than worrying about cashflow.
• Enables prompt payment to your suppliers which in turn will help you to negotiate discounts
• Bad debt protection can also be provided

Disadvantages

• Opting for a recourse facility can be costly if you are susceptible to poor debt turn or bad debts.
• Some of your customers may respond negatively to invoice finance. However, in some circumstances, you can opt for a confidential facility.

If you have any concerns relating to any of the advantages or disadvantages of invoice finance our partner advisors will be more than happy to talk through those concerns with you and suggest ways of working around them to create the best solution for your business.