For small to medium-sized business owners, managing cash flow and securing timely payments for invoices is often a primary concern. With invoice financing from Co-Pilot Finance & Insurance, you can alleviate these pressures and bolster cash flow to support your operations.
Understanding Invoice Financing
Invoice financing, also recognised as accounts receivable financing, is an asset-based financing approach. It allows businesses to use their outstanding invoices to secure an advance on capital. Typically, through invoice financing, your business can access up to 85% of your invoices’ value upfront. The remaining 15%, minus any associated fees, is received once your clients settle their invoices.
This financing method is particularly advantageous for B2B and service-based enterprises. It’s generally more accessible than other small business financing options because the invoices themselves serve as collateral. In addition, it addresses cash flow challenges effectively, especially when your clients delay payments or pay their invoices late.
Benefits of Invoice Financing
Here are the advantages of invoice financing and how it can streamline your business operations:
- Immediate Access to Working Capital: Unlock funds quickly to keep your business moving forward.
- Mitigation of Cash Flow Issues: Address financial disruptions linked to outstanding invoices.
- Ease of Access: Enjoy simpler qualification criteria compared to other financing methods.
- Security: Leverage B2B invoices as collateral to secure funding.
Our team at Co-Pilot Finance & Insurance is equipped and eager to help your business navigate its financial pathways. Whether it’s discussing invoice financing or exploring other suitable business loan options, contact us today to set up a consultation.
