Short Term Working Capital Resources
Simply put, Invoice Financing is not a loan as typically perceived, rather it is about selling invoices and unlocking cash instantly. The process entails funding solutions that advance against your outstanding customer invoices.
Invoice Finance is an alternative resource for short-term working capital financing. Once you have filled an order, a factoring company buys your account receivable and then handles the collection or gives you the option to handle your customers as you usually do.
How important is Working Capital?
Most businesses cannot finance their operating cycle (accounts receivable days + inventory days) with accounts payable financing alone. Consequently, working capital (or cash flow) financing is needed. This shortfall is typically covered by the net profits generated internally or by externally borrowed funds or by a combination of the two.
Naturally, positive cash flow is preferred and will present your business that looks favourable to creditors and lending companies. High positive cash flow is even better and will enable you to invest time and money into new ideas or expand on existing projects.
Which provider can finance my invoices?
Selling invoices on Populous World’s invoice finance platform allows businesses to sell individual invoices in order to free up cash, to a global pool of investors. The technology-based platform takes the formula of peer-to-peer lending and applies it to invoice finance.
So, if your business’s cash flow position is consistently low, then the flexibility provided by invoice financing is very attractive.
For example, if your company can foresee that it is likely to suffer from a cash shortfall in the future, you may consider applying for funding that can effectively inject immediate capital into your account. Being financially secure for any business is always a great place to be, it means you can focus more on business growth, meeting objectives and long-term plans rather than having to micro-manage time-consuming and stressful tasks.
How flexible is Invoice Financing?
Invoice financing is a nimble and flexible funding method for any small to medium-sized business as it gives you the ability to provide your business with sufficient cash in advance. It becomes payment readily available for vital necessities that fuel your business to run, for example; expenses such stock or raw materials, employees, rent and other operating expenses.
With most traditional bank loans or finance options, you might be required to commit to contracts that lock you in for up to 5 years. Depending on your invoice finance provider, no long-term commitment is required and you can use the service as and when you choose to.
>> Is your business in need of fast, short-term financing? Do you need to access cash faster than your customers pay you?
Populous World is an Invoice Finance provider that unlocks working capital for UK businesses.
Bridging your business’s cash flow gap is something that Populous World excels in delivering, providing you with the funding tools to grow and sustain your business.
For more information, visit us or contact a member of our funding team: info@populous.world
