Particularly handy for paying bills, funding growth or just releasing working capital that’s tied up within your trading cycle. You’ll lose 1-3% of the invoice amount per month as a fee.
Beware the honeymoon rates that are used to get your business. For regular use, expect to pay service charges of about 1.75% of gross turnover. You’ll need a quicker decision on initial funding and then flexibility to increase funding and credit limits. Alternative funders have fewer clients, so decisions are made as part of a personal service. Businesses whose trading cycles rely on prompt payment of invoices can then free up working capital for investment in stock, and speed up the contracts and orders cycle. As part of this service, you can outsource credit control and collections, freeing up valuable time. You can cover yourself against bad debts with credit protection. All credit scores are welcome, as the invoice is used as equity. Approval can be very fast: a few days, sometimes hours.