Using a credit card is one of the most common ways entrepreneurs finance a business. In fact, in a recent survey conducted on behalf of UK Finance, 78% of growing businesses were using credit cards to fund their growth and 70% of those in financial strain.
Credit cards are convenient and easy to obtain and use. So it’s not surprising that business owners rely on them for their day-to-day operations. But with half of businesses expecting to grow beyond the size they were pre-pandemic, an alternative form of financing businesses and growth could improve cashflow even more.
Invoice factoring is also known as invoice financing or accounts receivable financing. It is not a widely known financing option with many respondents mistakenly of the belief that it is the “finance of last resort”, even though it’s been around for about 4,000 years. Invoice factoring allows you to access capital trapped in your accounts receivable. Instead of waiting 30, 60, or 90 days for a customer to pay their bill, you can cash in a portion of an invoice for a fee.
Avoiding a huge debt burden
In fact, that’s one of the biggest hassles about using a credit card. If you’re not careful, your business might end up with a huge pile of debt.
We’ve run into business owners who tells us they’re tapped out on all their credit cards. No matter how much you plan, starting a business is a tough road with many unexpected costs.
And, of course, there are certain important business needs that you simply cannot cover with a credit card. One example is payroll. Invoice factoring offers a smarter and more convenient solution for your day-to-day business funding needs, big and small.
To discuss the funding options available to your business. Please do not hesitate to contact us on lynnew@regencyfactors.com and we can arrange contact via Facetime, Zoom or WhatsApp to discuss funding “Face to Face”
what is invoice finance? invoice finance for recruitment, invoice finance for dummies, invoice finance for new business, invoice finance for startups, invoice finance with recourse, invoice finance meaning, invoice finance for small business, factoring example, invoice finance, invoice finance, invoice finance UK, how many businesses use invoice finance, why use invoice finance, why invoice finance, what is invoice finance, invoice finance and factoring, invoice finance and asset based lending, invoice finance agreement, invoice finance advantages, invoice finance arrangement, invoice finance alternative funding, invoice finance for new business, invoice finance blog, invoice finance bad credit, invoice finance benefits, invoice finance case study, invoice debtor finance, export invoice finance, easy invoice finance limited, invoice finance facts, invoice finance flowchart, invoice finance companies manchester
what is invoice finance? invoice finance for recruitment, invoice finance for dummies, invoice finance for new business, invoice finance for startups, invoice finance with recourse, invoice finance meaning, invoice finance for small business, factoring example, invoice finance, invoice finance, invoice finance UK, how many businesses use invoice finance, why use invoice finance, why invoice finance, what is invoice finance, invoice finance and factoring, invoice finance and asset based lending, invoice finance agreement, invoice finance advantages, invoice finance arrangement, invoice finance alternative funding, invoice finance for new business, invoice finance blog, invoice finance bad credit, invoice finance benefits, invoice finance case study, invoice debtor finance, export invoice finance, easy invoice finance limited, invoice finance facts, invoice finance flowchart, invoice finance companies manchester