Stop chasing payments: the benefits of Invoice Financing

Managing cashflow is a problem that gives many business owners sleepless nights. Chasing money from outstanding debtors and juggling funds to pay staff and suppliers is stressful and time-consuming. Invoice Financing is an effective cashflow solution that is used by many businesses, and is a service offered by Benson Leasing.

Invoice Financing (also called Factoring), is a system where a finance company agrees to quickly pay a percentage (usually 80%) of each sales invoice generated by a business. This means the business has access to payment for goods and services it has provided within a few days, rather than weeks.

The invoice finance company takes ownership of the invoices it has partially funded, and chases the account payments if they exceed trading terms. Once the outstanding invoice is paid, the invoice financing company releases the remaining percentage of the funds to the business, minus their fee.

This system is also often used by businesses that are experiencing rapid growth, and need working capital to take advantage of new business opportunities. Many businesses use Invoice Financing and their clients would not know. Call Benson Leasing on 1300 795 058 to discuss how Invoice Financing can free you from chasing debts, and allow you to focus on your business.