What is an Invoice Finance Broker?

This is a sponsored article, brought to you by Zak Goldberg.

Zak Goldberg is a Law & Business Graduate from the University of Leeds who has chosen to follow his aspirations of becoming a full-time published writer, offering his expertise on all areas of business, law and finance. Follow him on Twitter @zak_goldberg.

What is an Invoice Finance Broker?

One of the most challenging aspects of successful business management - particularly for SMEs - is collecting money owed. Businesses without dedicated credit control may struggle to keep on top of late payers. Invoice terms can be exploited leaving businesses in a sticky situation.

Why Britain’s ‘Poor Financial Etiquette’ is Costly to Business

British businesses have a reputation for being late payers. This may have sociological roots; a 2010 survey revealed that Brits 'lack financial etiquette’ in social situations, particularly when settling a bill. However, this trend is no laughing matter for honest British businesses.

Failing to successfully collect owed money may lead to very real cash-flow problems for businesses. This could force a business’ expansion plans to be put on hold, or even negatively impact the day-to-day running of the business.

If a debtor has repeatedly failed to pay invoices, it is a likely sign that their business is struggling. If this money remains unpaid, it could lead to ‘bad debt’ - a situation where a debtor goes out of business, leaving you in a weak position to collect monies owed.

Businesses shouldn’t have to live with this problem. There must be a better way of maintaining cash flow. Could an Invoice Finance Broker provide a viable solution?

Invoice Finance Brokers

Invoice Finance Brokers help businesses grow by providing instant access to monies owed. As soon as invoices are printed, the broker releases the necessary funds. This overcomes many of the challenges associated with poor cash-flow. The benefits of this immediate access to finance can give businesses a real advantage over competitors, and help them to rapidly generate new custom.

Invoice Financing Brokers offer two distinct financing options, ‘Factoring’ and ‘Discounting’. Both approaches have the option to include bad debt protection.

Invoice Factoring

Invoice Factoring gives businesses up-front invoice finance whilst also handing over the responsibility of collecting debts. This two-pronged approach has the effects of taking away the worry and frustration of chasing up unpaid invoices and enabling your business to continue with the best possible cash-flow.

Invoice Discounting

Here, businesses continue to collect their owed monies, but the instant invoice financing remains. This may be beneficial for certain businesses who may not want their customers to know they have an invoice financing facility.

Take Control of Your Business’ Debt - Don’t Let it Control You

You don’t need to continue your month-to-month cash-flow struggle - there are ways of breaking the cycle so that your business can be freed from its financial inhibitions.

If your business struggles to keep up to speed with debtors, an Invoice Finance Broker can help you to regain control, and help to kick-start growth.

Has your business had ongoing struggles with one or more debtors? Is poor cash flow stopping your business achieve its potential?