Funding Societies is happy to announce the launch of our newest product: Invoice Financing. As an introduction, invoice financing is a product where sellers (“Borrowers” in this case) sell the future receivables or invoices they issued to their customers (“Debtors”) to get immediate cash.
Simplifying the concept further, say there is a business owner and a buyer. The buyer purchased goods or services from the business owner and was issued an invoice with a credit term of 60 days. This means the business owner will only receive payment after 60 days, at the earliest; but what if the business owner needs immediate cash? This is where invoice financing comes in. Business owners can sell their invoices at a discount, in exchange for immediate cash, thus enhancing cash flow.
Utilised wisely, invoice financing can be a fantastic tool for business owners. The process of getting upfront cash through invoice financing is significantly quicker than applying for a loan from a traditional financial institution. This is especially useful for business owners who need a quick cash flow fix. Perhaps he has the opportunity to fund business growth but most of his short-term assets are tied up in accounts receivables – he can apply for invoice financing and does not have to wait till the end of the credit term to get cash.
Here at Funding Societies, we can advance an immediate loan of up to 80% of the invoice value at interest rates as low as 0.67% a month. We charge no processing fee for the loan application and approval process, only a competitive fee upon successful disbursement.
For first time Funding Societies borrowers, it would take three to seven business days from application to disbursement – a process that is relatively quick and already includes a compliance check. Repeat borrowers are in luck: the assessment, approval, and disbursement process takes merely one to two business days.
Interested in learning more about our invoice financing product? Refer to our infographic below, or contact us to find out more!