Whenever you are in need of additional capital for your business for any reason you might get wary thinking about the time that it might take to get finances. The thought is influenced by you experience of getting bank loans that entail a pretty lengthy and complicated process, exchange of tons of documents, scrutinising the health of your business in minute details and yet not being sure that you would qualify for the loan. The time that you spend together with the uncertainty of outcome can be a very stressful experience.

To overcome this problem, you can look for better options of arranging finances through alternative methods like invoice financing that has become quite popular in Australia and the rest of the world. With invoice financing, you are assured of the money that you have in mind and by simply submitting the invoices that has been raised on your customers, you get the money quickly without any fuss. This is just one of many other reasons why invoice financing is so much preferred today.

No debts

In invoice financing, the invoices that are presented to the lender are paid up to a major extent. This means, the money that you owe to the customers are paid to you and there is no scope of creation of any debt. It is your own money that you are getting prior to the credit period that you have offered to your customers. And the charges that you pay for financing are much less than the interest rates on any kind of loan.

Predictable cash

Since money is paid against specific invoices, the amount of cash that you can get is already known to you. It helps better business planning and infusion of cash brings more liquidity that allows timely covering of expenses and using the cash to enhance working capital that can pave the way for business growth.

Cheaper money

Not only are invoice financing charges less than interest rates of loans, the cumulative benefits help to lower costs further. The lenders undertake many services that include collection of receivables, evaluating your customers’ credit health and determining their credit limits. By getting these tasks done by lenders, you are streamlining your operations thereby increasing your efficiencies of operation. Funding is completely need based without any obligation related to financing of working capital. The cumulative costs that you save considerably lower the cost of money that you secure.

No upper limit

Unlike bank loans, there is no upper limit to how much money you can gather through invoice financing. There is complete flexibility in getting as much money as you want according to the value of invoices that you exchange. Higher sales volumes that you achieve would mean more money that you can raise through invoice financing.

Zero risk financing

As no security whatsoever is pledged in the process of invoice financing, it can be considered to be completely risk free money.

Businesses can now avail the benefits of invoice financing to scale new heights very quickly.