What is invoice financing and how does it help a business to sail through? What is your opinion on the advantages a business gets through invoice financing?
Bernie,
Think that's what is called factoring in Australia and the UK. Basically its about risk management. You give up a %age value of the invoice and the factoring company takes on the risk of the invoice being paid or not. You need a good spread of customers otherwise the factoring company won't take you on.
I looked into it briefly in the 90s but didn't have enough customers. Can't remember what the percentage the factoring company wanted was. Probably depends on your business and who your customers are.
Kimbo
Thanks for the quick replies and sorry that I didn't reply earlier. What I think is that if a company needs instant cash then it should opt for invoice financing. Most of the companies fail because of lack of cash rather than lack of experience or expertise.
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