Will Invoice Finance Make My Business Look Weak?

Video Transcript

The use of the invoice finance is NOT a sign to your customers that you are struggling financially or doing it tough. In fact, invoice financing arrangements are increasingly common and viewed favourably by large customers. as they have the assurance that your business has the access to cash you’ll need to continue purchasing stock and raw materials to meet your customer supply demands. Growing businesses use invoice finance to fund their expanding operations, not as a last resort to maintain solvency. The old notion of “my debtor will think I’m financially weak and won’t want to deal with me” is 1970s thinking and it’s just absolutely wrong. In fact, in the United States and United Kingdom, large global corporations use invoice financing themselves to access up front cash because the more cash that’s in the system the quicker these businesses can also grow, and invoice finance solves this problem for them. Similarly, creditors will be assured you have the cash to meet your commitments (should they ask you), as opposed to waiting for your customers to pay you and you paying them when they feel like it. This assurance is particularly important in the current environment, where the chance of delayed payments are beginning or worry all businesses in the entire supply chain.

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