{"id":8908,"date":"2016-03-03T14:59:03","date_gmt":"2016-03-03T14:59:03","guid":{"rendered":"http:\/\/www.openbusinesscouncil.org\/?p=1477"},"modified":"2020-02-27T09:01:39","modified_gmt":"2020-02-27T09:01:39","slug":"how-to-manage-your-cash-flow-with-invoice-finance","status":"publish","type":"post","link":"https:\/\/www.footballthink.com\/how-to-manage-your-cash-flow-with-invoice-finance\/","title":{"rendered":"How To Manage Your Cash Flow With Invoice Finance"},"content":{"rendered":"
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London Finance Centre<\/figcaption><\/figure>\n

How To Manage Your Cash Flow With Invoice Finance<\/strong><\/p>\n

Maintaining a cash flow can present a number of challenges to many businesses, and sadly, only a few of them have available options to ease the pain. Studies have shown that, about 90% of business owners struggle to get paid on time when they offer goods and services to a client(s). This has been a problem for ages and many businesses have failed as a result of late payment from debtors. However, the good news is that, there are ways is through invoice financing. The invoice financing is a situation where a third party is involved in the outstanding payment deal by agreeing to buy your unpaid invoices for some interests.<\/p>\n

The use of invoice financing is highly important in any business if you want to get back your money in time. For example, a customer owes you $30,000, and you sell the invoice to an invoice financier (third party) for $25,000; the invoice fancier collect $30,000 from your debtor and pay you the remaining $5,000; you then pay the invoice financier on the agreed interest rate upon the success of the transaction. This looks easy and simple if all businesses can adopt the method. Moreover, it\u2019s important to know that, the invoice financier can be independent, financial intuition, or a bank. Find out below, how you can manage your cash flow with invoice finance.<\/p>\n

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  1. The Use Of \u201cDebt Factoring\u201d Method To Manage Cash Flow With The Invoice Finance<\/strong><\/li>\n<\/ol>\n

    Debt factoring is a term used to describe the act in which an invoice financier is managing your sales, ledger, and all the processes involve in collecting your money from debtors. When this happens, your customer will definitely know you\u2019re using invoice financing and it will help you to get your money very quickly. Here are the stages involve in debt factoring:<\/p>\n