|
One of the best ways for businesses to have a legitimate control on the cash flow by securing funding against the outstanding invoices is, invoice finance. However, businesses often do not opt for this simple and effective approach of funding as they believe in some myths that revolve around it. Following are some of the top myths regarding invoice finance. Myth 1: It must be expensive This is the most common myth regarding invoice financing, that it is most expensive financing method businesses can use. It is human nature to assume that when certain firm provide flexible and fast funding that business can use whenever they need, it is bound to cost you a dime. For the matter of fact, invoice finance is no more expensive than the other forms of business financing options such as loans or overdrafts. Moreover, it can be made to work out in a cheaper rate due to short-term nature of this funding. Myth 2: My customers will be chased for payments Another myth regarding invoice finance is, the customers that the businesses deal with will be directly contacted for payment. Which will make them aware of the fact that their debts have been sold on. Most businesses believe in keeping their relationships with their customers in control, since they have worked really hard to gain the customer base they currently have. However, very few invoice finance providers contact your customers directly to ask for payments. But most of the invoice finance providers do not take such steps, they equally believe in giving the businesses the entire control of their customer relationship. However, it is your responsibility as a consumer that you check with your provider if they contact the customers directly or not. Myth 3: It is only for businesses in financial trouble This cannot be anymore wrong. Invoice finance is a business funding approach which helps in providing cash flow to businesses in need as well as businesses that are growing. It is one of the most easy and affordable method to acquire funding for your business. There are many businesses that seem to have strengthen financially with the help of this approach. Invoice finance is proven to be the greatest approach for growing your business. Myth 4: You will be locked in a long contract For the matter of fact, businesses should be guided by the provider so that they choose the service that is suitable for your business. However, there are some invoice provider that ask their consumers to sign longer contract. Make sure that you cross check with your provider before signing any contract.
0 Comments
Leave a Reply. |
AuthorEmily ArchivesCategories |