What Is Invoice Finance?

• What is invoice finance?
• Why choose invoice finance?
• Who offers invoice finance?
• How do you set up invoice financing?

What is Invoice Finance?

Invoice financing, or invoice factoring, is a way to fund your business besides a bank loan. In essence, invoice financing gives immediate payment to your business for an open invoice. You submit an eligible business to business invoice for invoice financing, and you receive payment within 24 hours. An invoice finance company purchases your invoice and advances payment on the invoice to your company. Then, the invoice finance company waits the duration of credit terms for your customer to pay the invoice.

Why choose invoice finance?

Invoice finance offers an alternative funding option for small businesses rather than a loan or line of credit. The benefits to invoice finance include: growth potential, no repayment, flexibility, less approval requirements than traditional financing options, and credit protection. Invoice finance allows your business to continue growing rather than waiting for customer payment. Additionally, invoice finance companies take on the risk of customer non-payment, so your business has an extra layer of protection in the collections process.

Who offers invoice finance?

Some major online lenders have started offering invoice financing to small businesses. Be wary and be sure to read the fine print in the terms and conditions. Often, these invoice finance options require repayments with interest and function more like a loan than a factoring facility. There are many stories of doubled or tripled costs of repayments with these large companies. Eagle Business Credit offers invoice factoring, a flexible and growing business funding option. Eagle Business Credit, an invoice finance company based in Atlanta, GA, helps small businesses grow with strong cash flow and the ability to make more sales.

How do you set up invoice financing?

Many larger online lenders that offer invoice financing say they do not pull credit, but in fact there is fine print that shows they pull credit upon your first funding. We encourage you to look at lenders that are transparent and honest about their practices rather than trying to trick you into signing a contract that won’t help your business grow but will hurt your cash flow, instead. Eagle Business Credit’s application process is simple. You tell us the nature of your business and your monthly revenue. We evaluate the strength of your customers’ credit, not yours. We then agree on a flexible invoice finance facility that grows with your demand. It’s that simple.

Get started with invoice finance with Eagle Business Credit