Invoice factoring Wellington is the process of providing your business with an immediate cash solution in lieu of your debtors ledger. You can receive up to 80% of the amount of your current accounts within 48 hours of submitting your invoices for factoring. The remaining 20% will be paid to you once a debtor has settled their account with Asset Factor.
There are a number of benefits of using invoice factoring Wellington as an alternative to taking out a business loan or overdraft facility with your bank:
1. Constant Cash Flow
Waiting for your debtors to pay you can seriously disrupt the cash flow of your business. This can result in an interruption to operations, difficulty in paying staff and other factors that could negatively impact your business in both the short and long term. Invoice discounting or factoring provides you with a revolving cash flow which means that you never have to be concerned when your debtors pay and how much they pay.
2. Chasing Your Debtors
One of the most difficult tasks in any business is chasing clients or customers to pay the money that they owe your business. Delay in payments and partial payments could result in diminished cash flow which once again will put your business at an operating disadvantage. Opting for invoice factoring Wellington means that Asset Factor will chase down the money that your debtors owe leaving you free to focus on the more important aspects of running your business.
3. Instant Access To Cash
You don’t have to be concerned with the lengthy and complex process of applying for a business loan or overdraft facility when your business is in need of cash in a hurry. Simply submit your debtors invoices for processing and you will receive 80% of the total value in the business bank account within 48 hours. Asset Factor understands how critical access to immediate finance can be to your business.
4. Only Pay For What You Need
You don’t have to submit the total invoices for your current accounts or accounts receivable. You can choose to submit a portion of your invoices to receive only the amount that you need. Alternatively, you can access the cash the business needs as and when it needs it most. This means that you only pay for the amount that you actually use and not your entire debtor’s ledger when accessing your accounts receivable funds.
5. Affordable Fees
Asset Factor will only charge you interest on the amount that you access. The interest rate will be similar to that of a bank overdraft. A small administration fee of between 1% and 5% of your turnover is all that will be charged to provide the benefits of invoice factoring Wellington. There are no additional costs or hidden charges that you need to be concerned about.
Invoice financing gives your business the flexibility and security of an ongoing cash flow solution to ensure that operations are not disrupted and that your business can keep growing to achieve its optimal potential.