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Showing posts from November, 2021

Frequently Asked Questions about Debtors Finance

  It’s not uncommon for small to mid-level businesses to hit a cash flow crisis caused by the piling of accounts receivable. It can be concerning to the ones already limited by their capital constraints. So, what is the way out in such situations? The wise way out would be to get in touch with a finance broker to access  debtors finance .    It takes care of the immediate cash crunch , keeping the capital reserves in good shape till the receivables are paid in full. Some businesses might opt for  debt factoring  to reduce the gap in the cash flow.    While it is a common practice among business owners, there remain queries and doubts, which we will try our best to answer through this small Q and A blog.    What is Debtors Finance? Debtors finance enables businesses to acquire funding against the pending invoices or accounts receivable to fill the gap in cash flow and suffice the capital reserves. The lender releases fund...

The Varied Aspects of Invoice Finance

  Irrespective of whether you are a small business, or you are one of the corporate giants, managing cash flow is difficult for almost everybody. Amidst the hectic work schedules coordinating the invoicing cycles can be extremely overwhelming. But aren’t invoices important to meet the working capital needs? Well, yes they are. However, if you are falling short of capital because your pending invoices are sitting ideal on your desk, then financing those invoices can be a brilliant option. Instead of waiting for days, weeks or months to be paid by a customer, now you can release up to 95 per cent of the value of your invoice within a day of its issue. Invoice finance allows business owners to avail advance payments by submitting their cleared invoices as a safety statement or collateral. Who is eligible for Invoice Financing? Note that all enterprises aren’t eligible to avail invoice finance. In order to be eligible, an enterprise must: ●       Hav...