Benefits
- By receiving cash as soon as a sales invoice is raised, the business will find that its cash flow and working capital position is improved.
- The business will only pay interest on the funds that it borrows, in a similar way to an overdraft, which makes it more flexible than debt factoring.
- Invoice financing can be arranged confidentially, so that customers and suppliers are unaware that the business is borrowing against sales invoices before payment is received.
Read more about this topic: Invoice Discounting
Famous quotes containing the word benefits:
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—Laurence Sterne (1713–1768)
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—Oscar Wilde (1854–1900)