Invoice discounting. Have you heard about this term? And if so, are you aware that it can contribute positively to your business success? Let’s start at the beginning.
What is invoice discounting?
Simply put, invoice discounting (or invoice factoring) is a way for businesses owners to turn their unpaid invoices into cash, easing the frustration of cash flow headaches. Your debtor invoices are valuable assets, but unless they are converted into cash timeously, they are not contributing to your business success.
Why Invoice Discounting?
Your debtor invoices are an asset in your business and like any asset, it can be sold. It is a fast, flexible way to fund your business. Unlike a bank loan that requires to be securitised, the invoices you sell act as the security. It allows you to raise funding in instances where a bank loan is out of reach. In short: We pay you while we wait for the client to pay.
Hopefully we have peaked your interest, so if your business is struggling with cash flow, consider the following: What if we told you that you could get instant funds by selling your invoices to Flex Capital? By utilising this solution, you no longer need to wait for your debtors to pay their accounts.
How it works
1. Flex Capital buys your debtor invoices.
2. You instantly receive up to 75% of the invoice value.
3. We wait out the payment term and collect the outstanding amount from your debtor.
4. After receipt from your debtor, the difference is paid out to you.
With Flex Capital’s invoice discounting solution, stressful month ends are a thing of the past. Complete our application form (attached) or click on the link to complete online:
https://portal.quanta5.co.za/CreditApp?p=FlexCap001
Please submit the following documentation with your application:
– Financials or Management Accounts
– 3 months’ Bank Statements
– Latest Debtors Age Analysis
– If available, confirmation of the payment term arrangement with your debtors (Contract/Credit App)
Despite the best intentions of business owners, most companies will face cash flow problems at some stage in their existence. Whether it’s due to an unexpected drop in turnover or clients dragging their feet with their payment of invoices, negative cash flow can be extremely stressful. Flex Capital has the perfect solution.
