Alternative Business finance is offered as an alternative to traditional forms of lending. As banks have become more restrictive on the overdrafts they offer(especially for new businesses), invoice finance has grown significantly. Due to the fact that a companies invoices are seen as an asset, and by borrowing against those assets the lender has the security that they will be repaid. Therefore allowing capital to be released to aid cash flow.
Credit terms with businesses seem to have increased significantly over the last few years. Recruitment invoices used to be typically 14 day credit terms, there are now instances of them taking 90+ days. Many large businesses have increased credit terms from 30 days to 60 days to 90 days, which is a long time to wait when you’re a small business and need cash to expand and pay your bills. What are your alternatives? Overdraft, long/short term Loan, finance against your assets/property, or Invoice Finance. Each one has its advantages and disadvantages which needs to be weighed up when it comes to making a decision as to what type of finance you require.
Traditional invoice finance models have drastically changed in the last few years with the advent of peer to peer, peer to business, business to peer and business to business lending. Lots of different variations on traditional invoice finance models now exist offering all different advantages to the traditional invoice factoring and invoice discounting models. But beware of the headline rates that make the offers sound too good to be true. More and more fees are being added into the small print of contracts, that pushes up the costs of invoice finance.
Silverburn Finance likes to keep things simple. Send us your approved invoices and we send you 96% of the invoice value (based on a 60 day credit account). Give us a call (during office hours), and a person will answer the phone. We do not use voicemail.