Whether you’re a start up or established recruitment business, Darren Cottrell – APositive BDM, suggests you consider these five points.


What will my customers think if I use invoice finance?

I’m often asked the question: “what are my customers thoughts on invoice finance?” and, it doesn’t matter if the business requiring invoice finance is:

• A start up needing reliable working capital;
• An expanding business, which requires a higher level of funding to keep up with rapid growth; or
• A long-time, well-established company looking to restructure.

The question keeps coming up. Well, rest assured, invoice finance is no longer viewed as a last resort. In fact, it is now seen across many different industries as an innovative finance solution that helps businesses expand and sustain such growth.

Put simply, businesses – and their clients – now understand that one of the biggest challenges for small to medium enterprises is maintaining positive cash flow.
For example, it’s not uncommon for a profitable business to experience a gap between when the end customer pays and when invoices are due, or payroll commitments must be met. This will cause a shortage of cash and can happen even when you are making sufficient sales, and especially when your business is growing rapidly.

To explain, invoice finance is when payments are advanced for your outstanding invoices so that you can unlock the value of your receivables. With a signed timesheet or a confirmed permanent placement, you can access up to 100 per cent of the invoice amount on the same day it is raised.

Here’s what to Say When Dealt with Customers Thoughts on Invoice Finance

I believe you should always be transparent with your customers. So, tell them you’ve been strategic with your growth and put an invoice finance facility in place to help with the cash flow requirements of paying temps and contractors.

You can further explain the benefits such as quick access to funds and flexible limits that allow for your business growth.

By doing this, there is only one way your customers can view the news that you are now using invoice finance: it will give them greater confidence that you can service and pay their contractors on time, every time.

Plus, you can potentially use the invoice finance facility to pass on the benefit of longer payment terms, if required by your customer or to win more business.

Start Up 

Use our Start Up Cash Flow Calculator for an estimate of cash available for payroll when you raise an invoice.

Established Business 

Have you got growing pains? Desperately need help with admin?  See our back office solutions just for you.

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