Invoice discounting is a powerful part of the history of business finance and is a powerful and relatively secure way of borrowing working capital for a business.
It fills in the time delays in the working capital needs that a business faces for its growth and daily operations.
Cashflow also provides the much needed cashflow where longer payment days are agreed to with an end debtor.
In short, a business raises money, finance against an invoice sent to a client, before the client has actually paid.
For invoice discounting to work, a given financial organisation, alternative finance or bank will fund a percentage of the value of those invoices and usually take an assignment over the receivable and thus the money that will come in, in the future.
In today’s tough economic climate, more and more debtors are increasing the payment terms which negatively affects the smaller suppliers or entrepreneurs the most.
Invoice Discounting is not widely known in the SA market, but it is quickly becoming a very secure and viable option for SMME’s to continue trading while waiting for the final payments from the larger debtors.
Businesses that can benefit from early settlement discounts, need expansion growth capital or have unforeseen business finance needs, can all benefit from using Invoice discounting.
If you feel we can assist in expanding your business through Invoice Discounting, contact us today for an assessment of your needs and viability.
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Alternative Finance Solutions is a proud member of the Preference Capital Group and sole owner of BizCash, a business finance company.
Contact them here:
Bizcash: 0861 93 93 93