Create and Manage Your Invoice of for Enterprises Easily

Invoice of for enterprises

have you come across the opportunity for invoice discounting and factoring within your small business or are you not sure what it is follow this video and we'll explain all if you haven't yet click the bell and subscribe to be notified every time we produce our best pieces of content does cash flow just feel and are you waiting and does it feel like your customers are taking ages to pay let's explore the opportunity of invoice discounting and factoring that may allow you to release cash in your business quick what's it achieve it allows cash into your business quicker if you are selling your goods or services on credit sales you will have an amount owed by your customers in your accounts receivable every single month factoring or invoice discounting allows you to borrow against these invoices until you're paid which allows money to come back into your business quicker allowing you to meet all of your liabilities and invest in your business further to not hamper growth what are the costs ultimately it's a it's a short-term loan against your invoices this isn't for free so whatever you draw down from your factory invoice discount company will have two charges the first charge will be an interest charge on whatever balance you've borrowed against them customers invoices let's be honest they're not going to do it for free they will also have some form of service level charge which will be based on full activity that is going through the system so invoice financing or discounting both normally have two charges they have a service level charge and an interest charge of what you've drawn down all of them are slightly different and the devil is in the detail what are the differences between invoice financing and discounting invoice Finance is confidential you send your invoices to your customers in exactly the same way and your customers pay you into your company bank account exactly the same way but your invoice financing company will have a download so they can see exactly when your customers have paid you so if you're borrowing money on these invoices once your customers have paid you will pay this back to them invoice discounting is slightly different the invoice discounting company will do the invoicing for you and sometimes some invoice discounts in companies also ensure the debt for you at the same time but this will be evident to your customers so your customers will know that you're using an invoice discounting company because when your invoices are paid they'll be paying a separate company now this is really good for some small businesses as you're almost Outsourcing your credit control and part of your accounts Department this will allow you to concentrate on your business but invoice discounting can sometimes flag problems sometimes flag that you've got cash flow issues sometimes flag that you may not be as strong financially as as you'd hope to be which sometimes can make customers nervous the benefits of invoice Finance it gives you cash quicker but no one knows you're doing it your customers believe that you're funding your business in exactly the same way that you're doing and nobody knows the benefits of invoice discounting is you get to Outsource a chunk of your accounts Department to another company allowing them to manage it for you this takes away any stress that you may have but also allow you to concentrate on them really good things about your business the negatives of invoice discounting some people they may say oh they can't manage their own finances or have they been having to use an invoice Discounter because they can't manage their business properly now not every single company will think that some will some will not care so some will just concentrate on the value that you're providing for their business now the choices between invoice discounting and factoring will depend per business and per business owner there's nothing better that you can do than understand your business and its needs and making sure that if this solution is the best for you it is the right one now word of warning both of these have risk and the risk is this if you are running a business that is constantly on its overdraft limit right by the nose you're spending everything personally you've got black holes in your director's Loan account this is gonna only exasperate the problem if you're not very good as a small business owner managing money take both of these with with real real risk and care they can really generate and make your business Thrive but don't rely on them because this may be a downfall as just remember it cause just effectively another loan with certain industries this is what this product is made for a classic is recruitment for the right businesses and the right business owners these tools are magic it allows you to release cash in your business and it allows you to meet your liabilities and grow how great is that but if you're a business owner that's not very good managing their own finances you've got black holes in your director's loan account this will only make your problems worse don't rely on this income if you're a business owner that is constantly right on their overdraft this will help initially for an injection of funds but it will not solve the problem both of these tools I think are excellent for the right business owners and the right businesses but make sure if these are highly specific to you as in the team at mdh love talking to business owners especially ones when we're talking about Finance contact us and we will do our best to help you every single time foreign [Music] [Music]