Wholesale businesses face constant cashflow challenges. During the quiet times of the year when revenues may not be sufficient to cover the expenses, wholesale businesses still have to pay fixed costs like warehouses, property maintenance, utilities, office rental, salaries etc.
On the flipside, during the peak periods when customer demand is high, wholesale businesses may not have adequate cashflow to support increased sales orders. This might result in your customers looking elsewhere and hence concede potential sales to competitors.
An invoice finance facility is a cashflow solution that can help businesses like wholesale companies resolve this cashflow predicament.
How does invoice finance work?
Invoice finance allows your business to have full control over cash inflows and cash outflows. It provides cash injections as and when needed by selling outstanding customer invoices to a financier for a small fee. Your business can choose to get paid upfront on those outstanding invoices at the right time to maximise potential revenue and minimise funding costs.
For example, your business may need a $100,000 outlay to purchase and have products ready in your warehouse to be delivered to your customers. However, you may also have $120,000 in receivables (outstanding customer invoices) that you are waiting to get paid on. You can opt to finance $120,000 worth of invoices with a financier and receive funds within one business day. Your business now has the working capital to support its growth.
Invoice finance with InvoiceInterchange
At InvoiceInterchange, we offer customised invoice finance solutions to our customers through an easy-to-use online platform. We believe in flexibility and transparency:
- No obligation to drawdown funds. Your business can fund as little, as much or none at all.
- Pay-as-you-go, only pay for funds you use. There is no set up fee, minimum fees, monthly fees or exit fee.
- Cost is known upfront prior to drawdown.