Free up Your Cash Flow and Do Your Business

Small and medium-sized businesses face many challenges when competing in the competitive world of commerce. One of the biggest problems that they are faced with is keeping a managed cash flow to pay for supplies, inventory, and other business needs. This is the time when having a solution like Bibby debtor finance can help you with keeping all financial aspects of your business on track.

Credit Customers Tie Things Up

All respectable businesses, especially those that do large volume, offer some kind of credit options for qualified customers. While this is a great way to give your clients some wiggle room to pay for their products or services, if the majority of your clients are using credit it puts your business in the position of having to wait for them to make their payments to you. Depending on the terms of your individual contracts, this could mean that you have to wait anywhere from 14 to as long as 90 days to get paid. If your business is not particularly well-capitalized, the days between your delivery and the time you get paid can seem like an eternity. During this time frame, your business is still responsible for all the bills and expenses associated with staying open. Employees will not tolerate waiting an extra day to get their paychecks, even though you must wait for payment from your clients. While credit customers are great to have, they do have a way of tying up capital that you could use for other things.

income and expenses binders isolated on the office table

income and expenses binders isolated on the office table

Unleash Your Cash Flow

If your business could use a little help with cash flow and you have multiple credit customers in your books, debtor finance could be the solution for you. This business service is helpful in unleashing your cash flow without putting your credit customers under any pressure to pay their invoices with you early. How debtor finance works is you create an invoice for your client, complete with your payment terms and send a copy of the invoice to the debtor finance company you are working with. In turn, the debtor finance company will advance up to 85% of the invoice value to you within 24 hours. When your client pays their invoice, the debtor finance company will take a fee and deposit the remainder of their payment to your business account within 24 hours. This service is helpful for many reasons, the main one being that you get access to your cash flow almost instantly and you do not have to wait around waiting for the terms to clear. The finance debtor company essentially gives you access to the funds that are already yours without waiting anywhere from 14 to 90 days. This gives you the power to become a more efficient business and removes some of the worries that go hand in hand with waiting on credit clients to pay their outstanding bills. Whenever you get a credit sale, you do not need to fret that 90 days is a long way off to get paid. Debtor finance removes this aspect so you can focus on just doing your business.

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