Cashflow is the lifeblood of any business, and boosting it quickly is very useful indeed. One of the ways in which you can make a quick injection of cash into the business is to choose a finance product such as factoring. This is a form of lending where a provider such as Regency will pay you most of the value of an invoice almost as soon as you’ve raised it. The idea being that it eliminates the problem of delayed invoice payments, which is usually the largest cause of cash flow problems. Instead of waiting, the cash is there immediately.
Once you’ve set up an agreement you can raise funds very quickly indeed. Usually, funds can be transferred to your account within 24 hours of you raising an invoice, and this is generally up to 90% of the value of invoice. The remaining value is transferred to you, less fees, once your customer pays the invoice. Ultimately, this means that as soon as you sell your goods and services, you’ll have the money you’ve earned.
That’s not the only reason many businesses, particularly SMEs, choose factoring. With this product, the process of credit control is handed over to the service provider – they chase payments rather than you doing it yourself. There are two main benefits for this. Firstly, it means that you don’t need to worry about spending money or allocating resources to this task – particularly useful if you’re a startup, or you don’t have the space.
It’s important of course to conduct extensive research into your options. Different products will have pros and cons for your business, and as a result, it’s often a good idea to consult an expert. Factoring is however, specifically designed to combat cash flow difficulties, so could be a very effective tool for your business.
If you’d like to find out more about alternative our business finance facilities, we’d love to be able to help. Why not give Regency a ring today on 0161 280 4010, drop us an email at email@example.com or browse our website for more details on how our facilities work