Consider Invoice Finance for Your Business

Starting and running a small business in New Zealand can be challenging. There are start-up costs, overheads and then you need to make sure you are getting enough cash flow coming in every month to cover all of your costs.

That’s why a lot of businesses are looking for ways to expand and keep liquidity by applying for finance. This can come in a variety of forms. Commonly businesses will be looking to raise money by taking out a loan at the bank, bring on board investors or use personal debt by securing assets.

At the same time these businesses often have plenty of outstanding invoices which, if paid, would help to alleviate that financial pressure. This is where invoice factoring can be helpful. Rather than having to pay interest on a loan or give away equity for money, there is another way. Invoice finance uses your outstanding accounts receivable as collateral to raise finance. Essentially you are selling the debts that are owed to you for a portion of the price, the invoice factoring company will then go and collect those debts for you and take a fee.

This can be a great way to bridge short term cash shortages and make your business more liquid. To find out more about invoice financing we recommend reading some of the guides over at Find Invoice Finance.