Small companies face an uphill battle – buyers leverage long-payment terms on invoices and banks are often unable to give businesses the access to the funds they need. Large companies are demanding longer payment terms than ever before.

1. What actually invoice finance is?

As an entrepreneur, you know that working capital (cash) is the lifeblood of your business. Small businesses must absorb direct costs, labour and other expenses weeks or months before getting paid. Landing a large customer or getting a huge order is good for business, but it can put extra pressure on your cash flow if your customer demands long payment terms.

Wouldn’t it be nice to receive payment earlier than 6 weeks or 3 months? Invoice finance is the right solution for you to keep serving your clients. Apply for an invoice financing loan with us.

2. Why do you need it now?

Small businesses face an uphill battle: buyers leverage long-payment terms on invoices and banks are often unable to give businesses the access to the funds they need, large companies are demanding longer payment terms than ever before. Seasonal sales and a pickup in demand can also put stress on your working capital.

Invoice finance allows you to unlock cash from your invoices immediately. You can use that to:

• Meet seasonal demand by increasing inventory
• Get an early payment discount from your suppliers
• Hire extra staff
• Win new customers by offering longer payment terms than your competitors.
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3. What makes Red Oak Group different?

Banks and other providers offer a very expensive service that is unsuitable for small businesses. By choosing us, you:

• Get more cash for your invoices,
• Save money by paying less compared to our competitors,
• Know how much you’re paying,
• Are free to choose which invoices you sell.

4. What are the alternatives to invoice finance?

• Long-term loan – long-term loans are a poor alternative for when the financing need is temporary, because you have to pay for using the money even when you don’t need it. Loans also amortize over time, which means the amount of funds available is decreasing as time goes by. With invoice finance, your limit will increase as you build trust over time.
• Overdraft – an overdraft secured against invoices typically would only raise about 50%.
• Collateral – most other forms of financing demand you post collateral of some sort. Invoice financing is different – no collateral required

At Red Oak Group, we are ready to listen and serve you to see you achieve your business goals in the shortest time possible. Apply for loan here or get in touch with us for inquiries.