Invoice Financing

Good For:

Resolving cash flow problems stemming from unpaid invoices. (ie. wholesale, product distribution)

Bad For:

You are a B2C business or do not invoice customers.

B2B businesses can take advantage of invoice financing to resolve cash flow issues from unpaid invoices or sporadic due dates (all customers have different due dates).

With invoice financing, a lender advances you a percentage of your total invoice amount holds onto the remaining percent. You can use the advance to cover business expenses while you’re both waiting for your customer to pay. During that time, the lender will charge a weekly fee (say, 1% per week). Once your customer pays, the lender will return the remaining percentage (in this case, 15%), minus fees. What's great about this is that you could offset the cost of this service by charging your customer a late fee or interest on the invoice. You're not really losing too much.

This is a great option if you have cash flow problems because you bill several customers, and they all pay at different times or have customers who consistently pay late. You can use the advance to cover payroll, rent, and other operating expenses.

Apply for Invoice Financing