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Businesses need a consistent flow of working capital in order to function smoothly, fund growth and invest. But sometimes, whether it is a result of seasonal fluctuations in demand or an unexpected corporate expense, that working capital can dry up.
That's why many businesses use invoice finance. Invoice finance, also known as debtor finance, allows you to unlock the capital that's tied up in your unpaid invoices by borrowing money that is secured against the value of your invoices. This means that you have consistent cash flow when you need it without having to secure loans against your assets or fill in any heavy-duty paperwork. Invoice finance can help to reduce the pressure of cash-flow stress and could give your business the boost it needs to thrive.
Funding Pro invoice financing products are suitable for B2B businesses that provide goods or services to their customers on terms of credit (i.e. issue invoices to their clients). Funding Pro offers borrowers same-day approval and 50-90% of the value of their outstanding invoices upfront up to the value of $2,000,000 with their invoice finance solutions.
Unlike other invoice financing companies, when determining your eligibility for finance, Funding Pro is not wholly concerned with how long your business has been trading, your annual turnover or your profitability. However, it will look at your credit rating and at the financial viability and creditworthiness of your customers in order to determine whether your business is eligible for finance.
Funding Pro offers a range of invoice financing products: Invoice Factoring, Invoice Discounting, a Virtual Line of Credit and a Trade Finance service. While these products are either types of invoice finance or work with invoice finance, there are important differences in what they can offer your business:
Invoice factoring can be good for start-ups with little trading history or for those that do not have a strong accounts receivable department. Invoice factoring alleviates the pressure of debt collection and can save your team valuable time and money.
It is also good for consistent cash flow because all of your accounts receivable are financed. However, this can prove more costly than other types of invoice finance as your business will have to pay interest across your full invoice ledger.
Invoice discounting can work out cheaper than invoice factoring as you only pay for what you borrow, so there is no need to pay interest across the whole of your client invoice ledger. Rates are also sometimes lower with invoice discounting than other types of invoice finance.
However, as you are charged interest based on how long it takes your customers to pay, invoice discounting is usually better suited to businesses with a strong accounts receivable department as the later your customers pay, the more it will cost your business. Invoice discounting also offers no insurance should your customers not pay at all.
A virtual line of credit could be beneficial for businesses that wish to have the convenience of stabilising their cash flow with finance without having to submit invoices for approval each time, but also without financing their entire invoice ledger. Funding Pro determines your company's eligibility for a virtual line of credit by assessing your accounting software to see how regularly your clients pay outstanding invoices.
Trade finance is a way of paying your suppliers straight away through finance and repaying the cost over a longer period of time. It typically works in conjunction with invoice finance as the cost of the supplier payment is usually secured against the value of your outstanding invoices. However, this might not necessarily be the case for everyone.
Funding Pro's trade finance can benefit businesses that have trouble paying suppliers on time or don't wish to miss out on future business opportunities. However, deferring supplier payments can cause problems further down the line.
The cost of Funding Pro's invoice finance solutions will vary depending on which product you decide is best for your business. It will also depend on factors such as your credit rating, the credit rating of your customers, how frequently your customers pay their debts on time and in some cases, the profitability of your business.
To apply for Funding Pro invoice finance, simply click "Go to Site" and submit an inquiry online or call them directly. Inquiries work as a pre-qualification tool, which is free to use and won't impact your credit rating.
Some questions you will be required to answer on your pre-qualification application include the following:
You will also need to provide the following information:
Before submitting an application, consider what type of finance would suit your business best and compare your options carefully.
Funding Pro is an online lending platform that offers a broad product portfolio, including home loans and a large range of business loans as well as an invoice finance service.
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