What is Invoice Discounting?
In simple terms, invoice discounting can be described as a type of short term loan based on ‘credit as a service’ model, borrowed to address a company’s cash flow problem and maintain its working capital.
Invoice discounting allows businesses to borrow money against their due invoices, before their clients have actually paid. This facility addresses a major pain point of cash flow deficit and allows companies to remain financially healthy.
Benefits of invoice discounting
No Security Required
One of the most propitious benefits of invoice discounting is that it does not require an applicant company to own any assets (for example, property) to show as security. This, as against bank loans, is a huge advantage for SMEs, who might not necessarily have a high value asset or property to use as security against the loan.
Invoice discounting always stays confidential, which means the company applying for a loan need not share any credit or financial information with its clients. It enjoys full control and autonomy with regards to credit collection from its customers.
More Working Capital
Invoice discounting companies offer more cash as a credit than banks or overdrafts. It also offers companies the freedom to raise capital as often as they require. The amount of cash available is automated to the borrowing company’s sales ledger. This feature frees companies from the worry of outgrowing the amount of cash available from their loans or overdrafts.
Other Cash Flow Management Benefits
Most invoice discounting tools can be installed directly into a company’s accounting software. Not only do they help to clear invoices instantly, but also come with a wide range of add-on cash flow management features that help companies with backend payroll support, protection from bad debt and other useful services, and guard them against any potential fiscal risks.
Instant Business Financing
Most importantly, invoice discounting allows quick access to flexible and highly competitive working capital by converting unpaid invoices into readily available cash via a secure online platform and within 24 hours!
All this – without any paperwork, lock-in contracts, hidden fees or upfront payments – surely helps businesses to stay in control, competitive and maintain a steady cash flow.
As one of the most reliable invoicing discount companies in Australia, we offer you FundX, an intuitive cash flow optimization tool that helps you to clear your voices instantly and handle working capital deficits with ease, without interrupting your business.
Whether you are an entrepreneur looking for business funding or a small to mid sized business struggling with unpaid invoices, with FundX you can always bank on a quick, simple and reliable flow of cash to handle all kinds of financial crunches – whenever you want and as often as you want!
Need more information on how invoice discounting works or how FundX can take care of all your business expenses, get in touch with us at email@example.com