What Differentiates Invoice Financing From Other Business Financing Sources?

Invoice finance has been around for more than a century and is still a viable option for business owners and entrepreneurs. 

What makes it unique? In this article, we'll explore the similarities between invoice financing and other types of business financing. Then, I'll explain some of the key differences that make invoicing loans so appealing to growing businesses.

Less Expensive than Other Options

If you’re looking for a business financing solution, invoice financing may be a good option for your company. It’s not just the cheapest; it also has some other advantages over other options such as bank loans and credit cards.

The main reason why invoice financing Australia is so much less expensive than bank loans or credit cards is that there are fewer fees involved with it. When you take out a loan from the bank, there are going to be many different fees associated with it such as application fees, processing fees, late payment penalties and more.

 These add up quickly! With an invoice factoring provider (like us), there’s no need for any of these extra expenses because we only charge our clients when they get paid by their customers using our service.

Invoice Financing Is Unsecured Funding

Invoice financing, also known as factoring, is unsecured funding. This means that the lender does not have to take any collateral from you in order to loan you money. You only have to pay back a small percentage of your invoice amount as a fee and can be paid back in installments over time.

What this means for you is that you can get access to cash without having to put up any collateral or equity upfront. This gives your business the ability to grow at a faster rate than if it were relying on traditional bank loans alone!

It Is Fast, Flexible, and Simple to Qualify For

The process to apply for invoice financing is fast, easy, and simple. There is no need for collateral or long wait times. Unlike other business financing sources that require a long application process, there are usually no credit checks needed with invoice financing.

You can qualify for this form of business finance in less than 24 hours after submitting your application! You simply submit an online application with your information and details about the invoices you need to be funded. The company will then review it and let you know if they accept or reject your request within one business day!

Invoice Financing Covers Most Business Types and Sizes

• Invoice financing is for businesses of all sizes and industries. Whether you're a small-scale operation or a large corporation, invoice financing can help you meet your financial goals by providing the cash you need to pay suppliers, vendors, and other service providers on time.
• Invoice Financing requires a steady stream of invoices. If your business depends on customers paying their bills quickly (and without fail), then invoice financing will work well for you. 
• This method helps ensure that your company won't be left hanging when it comes to timely payments from customers who are waiting for their own invoices to be paid by other sellers or buyers in the marketplace as well!

 

Conclusion

It’s important to note that invoice finance is not a loan. The lender provides working capital in exchange for a lien on your outstanding invoices and other business assets. Therefore, it’s a great option for businesses looking to access cash quickly without putting up collateral or selling equity.