Invoice Financing

• Immediate Fund Access: There are times when a business requires immediate funds to serve a given requirement. Applying for traditional financial products like business loans or other credit can be extremely time-consuming due to in-depth paperwork. Invoice financing is a good way to attain funding within a short time.

• Facilitates Cash Flow: Liquidity is an important component for the smooth functioning of any business. Invoice financing increases the flow of liquidity within the company. It reduces the terms of working capital cycles.

• Non-Collateral Requirement: Businesses do not have to provide collateral when availing of this scheme. However, a detailed summary of the invoices must be furnished during the application process.

• Increases Growth Opportunities: Invoice financing enables the credit sales to be converted into liquid cash. This generates a better opportunity for the cash to be directed towards other opportunities pertaining to sales and operations. Advanced machinery can be purchased; further investments can be made, and much more.

• Confidential Financing: When a business owner opts for invoice financing, the customers or suppliers do not know the borrowing as this method offers confidentiality.

• Promotes Customer Relationships: Invoice financing allows businesses to provide their customers with enough time in the form of a credit period. This promotes goodwill among consumers and ensures that the business has flourishing sales.

• Better Opportunity for Upfront Cash: Compared to other loan facilities, a business loan enables better upfront cash. This is because the funding opportunity is directly dependent upon the company’s sales.

• Invoice financing offerings are highly subjective and different lenders may have varying requirements. Typically, lenders are highly apprehensive of offering the scheme against commercial invoices. This means that if a business's clientele includes the public, then it may not be eligible for the scheme.

• The availability of funds through invoice financing may lead to employees becoming a complacent and losing focus on capital liquidation. The business might ultimately incur losses in the long run.

The invoice financing scheme is a great opportunity for business owners to wade through short-term financial crises. It is a cash loan that can help with daily operations and improve the offered services. The most notable aspect is that a borrower does not have to provide collateral, making it a quick financial aid. At Bajaj Markets, you can also apply for a business loan to fund your entrepreneurial pursuits. Apply today!