Invoice Finance: Supporting Business Growth and Expansion
Invoice finance is a wise option if you need to grow or expand your business. This gives you access to the cash tied up in your unpaid invoices allowing you to grow your company even though you have delayed payments. You will also improve cash flow.
By utilising invoice finance, you can access the cash you need precisely when you need it most. With the capital obtained through invoice finance, you can invest in new projects, expand into new markets and hire more staff if needed.
This type of borrowing can be higher in interest rates, so be clear on the terms and conditions before committing. Utilising invoice finance could also impact your credit score as you are essentially borrowing funds from a lender.
Consider these points below:
Confirm the affordability to pay back the loan amount: Required finance typically ranges from £5,000 to £500,000.
Interest rates and fees: Invoice finance often comes with higher interest rates and fees. Compare offers to ensure you get the affordable option.
Repayment terms: Repayment typically involves shorter periods, at times as little as 6 months.
Impact your credit score: Understand the potential impact before proceeding.
Should you decide to explore invoice finance, you must understand the risks as there are aspects to keep in mind before you decide whether invoice finance is suitable.
For more information and expert guidance, our team at Rosewood Finance specialise in tailored commercial finance solutions and can help assess if invoice finance is the right type of loan for your business.