Most business owners would understand the frustration that comes with having to get paid for work or orders that have already been completed.
In many instances, businesses might need to wait 60 days or more to get paid, which can put a strain on the business's cashflows and makes it difficult to grow.
Fortunately, there are options to help alleviate the stress of waiting to get paid.
A business can often get a fast cash injection by way of a business loan or line of credit.
Business loans are organised through a lender with the help of a finance broker. Each lender will have its own criteria that a business must meet to get approved for a loan. Loan amounts will also vary between lenders.
Typically, a business loan is unsecured, which means that the interest rate will normally be higher than a comparable secured loan.
As a result, a business loan might be a quick way to help with a business's cashflow, however, it still might come at a cost.
Another option to help elevate the cashflow issues that come from waiting for payments is invoice finance.
Invoice finance is also organised through a lender, but is normally done on an ongoing basis. This means your business and the lender will have an ongoing relationship which in turn tends to lead to more flexibility and potentially cost-effectiveness.
If you set up a certain arrangement with a lender, it’s possible to change terms as time goes on as your business grows or if your requirements change.
Invoice finance is a good option if you’re looking at ways you can grow your business with the help of a lender. It can save you from making repeat applications for finance and there are also other features that the lenders can offer that might be able to assist your business.