Introduction
Invoice discounting is a way to borrow money against your outstanding
invoices. It's a useful tool for growing businesses and saving time, energy and
hassle when the cash flow is tight.
What is invoice discounting?
Invoice discounting is a fast and easy way to get cash in hand. It's also a
loan without collateral, credit checks or paperwork.
Here’s how it works:
·
You sell your outstanding invoices to us and we
pay you upfront for them.
·
We collect from the customer once they have paid
their invoice, including interest on both sides of the transaction and our
service fees.
Why is it important?
Invoice discounting is a short-term lending solution that allows you to get
cash quickly, without having to wait for payment. It’s a useful tool to help
you stay afloat while waiting for your customers to pay their invoices.
Here are four ways invoice discounting can help you:
·
Save time – Invoice discounting allows you not
only to access fast funding but also drastically reduce the time it takes to
complete the paperwork. With invoice finance, there are no credit checks or
long waiting periods involved like there would be with other forms of lending.
You save time by getting funds within 24 hours after submitting an application
online or over the phone; and once approved, you receive your cash immediately
from our bank account transfer service via electronic transfer into yours or
through cheque delivery by courier within 24 hours! No more making late
payments because of cash flow issues; now it's all about being on time every
time!
·
Save money – Instead of paying high interest
rates when applying for loans through traditional lenders like banks, why not
save money by borrowing from UK based financial institutions? At Capital Direct
Lending Ltd., we offer competitive interest rates as low as 2% per month
What are the benefits and risks of invoice discounting?
There are several benefits associated with invoice discounting. It allows
you to receive money within a short period of time rather than waiting for your
customers to pay you. This can be beneficial when you need cash for another
business expense or to pay down debt.
Additionally, invoice discounting will allow you to grow your business
without having to wait for payment from current clients, which may help attract
new clients and strengthen existing relationships.
Finally, some businesses use invoice discounting as an opportunity to reduce
their overall costs by cutting down on the time spent collecting payments from
customers who have not yet paid their bills in full.
You'll have cash and time to grow your business.
With invoice discounting, you can get money and the time to grow your
business.
With invoice financing from BlueVine, you'll have cash to invest in growing
your business. You'll also have time to focus on growing your business by
working with customers, developing new products and services or hiring new
employees. You can also use the extra cash to take a vacation or spend quality
time with family and friends.
Conclusion
Invoice discounting is an excellent
way for businesses to access the cash they need without having to wait for
their customers to pay them. It’s a win-win situation, as it provides you with
cash flow while allowing you to reduce your receivables and avoid costly late
payment penalties.
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