A short guide to invoice financing

October 10, 2016  |  Supply Chain Finance

Tungsten mentioned this post in Business Zone, called “A short guide to invoice financing“. The article discusses that invoice financing enables small business owners to release cash tied up in outstanding customer invoices to balance cash flow and provide additional funding for growth. It can be particularly beneficial for businesses that face problems with late payments.

The article warns that permanently using invoice financing to generate immediate payments and meet financial obligations will leave the business short of the total amount they’re owed in the long term. However, used in the short term, invoice financing can provide small business owners and entrepreneurs with a quick influx of funds without the burden of heavy repayments.

Then again if you know that invoice financing is part of your long term strategy you might be able to incorporate it in your pricing and payments strategy.


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