How can invoice financing help a new business?

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Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.

They say all businesses start with an idea. Anyone can have an idea, so what turns that idea into a fully-fledged business?

Well, it can be one of many things; the dedication; the time put into it; even the help you receive in the early stages. But most importantly, it’s the money. No idea can get off the ground without the finances to lift it from an idea and into reality. Small business that do eventually get off the ground often run into cash flow problems early on.

Even if you have the know-how and the skills to run a successful business, sometimes things can go wrong and financial assistance is needed. Banks won’t always supply small business with the loans that they need at the beginning. So, what can small startups do to secure the funds in order to gain traction in the business world? Many look to invoice financing.

Even if a small business has secure dealings with other companies they sometimes have to turn down business due to a lack of capital. This capital is often tied up in outstanding invoices owed to them by the other companies they choose to deal with.

This is by no means the fault of the small business, or the businesses that have outstanding invoices with them, these things happen in business all the time. But invoice factoring allows this money, otherwise stuck in the accounting office in an unpaid invoices pidgeon hole, to be freed up and ready for use.

This money can be used to grow operations and secure new business. Lack of capital rates as the second most common reason for small businesses to fail, making invoice financing a vital tool for modern companies who wish to succeed in a testing economy.

If you own a small business and wish to free up capital tied up in outstanding invoices, invoice finance may be your best option.

Quote Goat has helped clients with a range of business financing needs from merchant cash advances through to asset financing. Speak with our business finance brokers today by completing the form via the button below.

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