The Importance of Single Invoice Finance

Here, we list out the major 6 reasons why single invoice financing is ideal for small to medium size businesses.

 

For those who are new to it, single invoice financing is a really helpful option, which can assist small to medium businesses while facing a rejection by the banks or other major lenders. Invoice financing will help one to obtain the needed capital without the need for jumping over any complicated hurdles as mainstream lenders put forth.

 

  • No need for debtor concentration caps– While most of the banks and leading finance service providers want it to be big, single invoice financiers will fund you even if you have a single or couple of customers.  Know more info on invoice financing for small businesses. 

 

  • Poor financial condition– Your current financial status is not a barrier to obtain a single invoice finance, but the deciding factor is the quality and capacity of your debtor in approving funds.

 

  • No need for full-turnover agreement– You can custom decide which invoice to can sell for funds. There is not need for you to pay the fee on each single invoice you surrender.

 

  • No need for long term contracts– With single invoice finances, the providers will not mandate you to sign any long-term contracts to factor your invoices. You can decide on when and which invoices to sell.

 

  • No security needed– You don’t have to pledge your property or give any other guarantee as the invoice you factor itself is considered as the sole security.

 

  • There is no account fee, application fee, or exit fee; however, you have to talk to the financier first to verify it. Single invoice finances let you enjoy the fruits immediately and there is no long wait for funds, which may be one frustrating factor keeping you away from banks.

 

How does it work?

 

No need for long term contracts– With single invoice finances, the providers will not mandate you to sign any long-term contracts to factor your invoices. Most of the invoice financiers grant 80 % of the invoice value instantly.

 

Many people are still doubtful about how the single invoice financing works. In simple terms, once your product or service is delivered to a client, an invoice will be raised to your customer, which you can sell to the financier for instant cash. Most of the invoice financiers grant 80 % of the invoice value instantly.

 

Invoice financing will help one to obtain the needed capital without the need for jumping over any complicated hurdles as mainstream lenders put forth. No need for full-turnover agreement– You can custom decide which invoice to can sell for funds. There is not need for you to pay the fee on each single invoice you surrender.