Invoice Factoring Allows For Positive Cashflow

As a form of debt financing, invoice factoring is made available to businesses providing products or services to another business (B2B). These businesses can sell the invoices and get about 80 per cent of the invoices' value paid to them upfront. Slow paying clients or unexpected business events are just some of the times when debt factoring makes good sense for business success.

No Property Required as Security

A small business can't afford to wait around for their customers to pay them as the business needs to rely on a consistent cash flow. Debt factoring allows a business to get paid now for outstanding invoices. To this end a number of financiers have emerged who now promote invoice financing as a way for small businesses to get cash in hand quickly. The big deal with invoice factoring when compared with bank financing is that no property is required as security. Therefore a business doesn't have to fund machinery and vehicles through a building when they use other funding options.

Key Benefits of Factoring include:

● No requirement to put property up as security
● Simple administrative processes - often approved for funding within hours
● Bad debt protection - you're protected against customers who can't pay

Yes, cash flow facilities secured by property from the likes of banks do attract a cheaper rate, but that is if you get funding from a bank. Often they slam their doors in your face. Today, invoice finance is recognised worldwide as one of the best cash flow solutions for a small business. It is being looked upon in New Zealand as a first choice of lending. The key benefits of invoice discounting are speed and flexibility, and turnaround finance can be anything from 4 to 48 hours.

Invoice factoring allows a business to borrow short-term against invoices they issue, allowing them to access the money immediately. Traditional forms of financing are often uncooperative and today many small business in New Zealand look at their cash flow as an issue, resulting in some businesses going under.