Your Business

5 Reasons to Try Invoice Financing

By Robyn Parets

Now that 2016 is in the rearview mirror, it’s time to think about how invoice financing can help improve cash flow at your business as you move into the new year.

If you’re unfamiliar with invoice financing, it’s a type of funding that provides you with cash advances to cover your unpaid invoices. This is different from a conventional business term loan in that you don’t borrow a one-time lump sum of money that you then have to pay back plus interest and other fees. Instead, invoice financing advances you the funds to cover the exact amounts of specific unpaid invoices. For example, if you have a client that always takes three months to pay, you can take advantage of your option to only advance this client’s invoices.

5 Reasons to Try Invoice Financing in 2017

  1. This may prove to be your best source of funding.

    If you’ve been wondering whether a business loan might be necessary to help you manage your cash flow, you might want to rethink that. Invoice financing may provide you with all the funding you need to manage your uneven cash flow.

  2. Invoice financing will help eliminate your cash flow gaps.

    This is important because when you sign up for invoice financing through Fundbox, you can avoid waiting 30, 60, or sometimes even90 days to get paid by your clients. Instead, you can select an invoice from your Fundbox account and receive funds in as soon as one business day.

  3. Getting started is easy and free.

    It takes only a few minutes to create a free account at Fundbox. Signup is free, and once you’re approved and ready to go, you can begin clearing your invoices. You should see the cash in your designated bank account by the next business day.

  4. You’ll have manageable payments.

    With invoice financing, you will need to repay your cash advances, plus a small fee. With this said, you can decide which invoices you’d like to receive cash advances for and therefore you always have control over the amount you’ll be repaying at any given time. You can also decide whether to make weekly payments stretched out over 12 or 24 weeks. Learn more about pricing (and the lack of early repayment fees!) here.

  5. You can spend your time focusing on your business.

    Another big perk with invoice financing: You can rely on steady cash flow. This means that you can stop worrying about how you’re going to handle an unforeseen cash flow crunch and focus on what’s most important: Running and growing your business your way.

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