What are the advantages of invoice finance?

While it won’t necessarily be right for everyone, there are clear advantages of invoice finance worth noting; it’s a simple, transparent solution to funding your business by releasing cash that you’ve worked hard to earn. Compared to the costs, complexity and risks attached to other forms of lending, we believe it’s a very strong candidate!

6 key advantages of invoice finance

So, what exactly are the advantages of invoice finance? We take a closer look at 4 of the benefits it offers businesses below.

1. It optimises your cash flow

Waiting and chasing for payment for 30, 60 or even 90 days will impact your cash flow and decision-making agility. One of the advantages of invoice finance solutions is that it takes this burden away and is a powerful tool in improving your cash flow. With Hydr, your invoices will be paid in full within 24 hours for a fee that is fair and fixed. Choose as many invoices as you would like to finance, for as long as you would like to finance them.

2. It puts you in control of your cash flow

Having certainty over when the cash comes into your business means that you can proactively plan for the future, be prepared, considered and agile in your decision making and avoid cash flow dips. Achieving this degree of control over your cash flow is a key advantage of invoice finance.

3. It can generate investment capital

Another advantage of invoice finance is that you can grow your business with money that you have worked hard to earn, rather than taking on new debt. Whether it’s buying new equipment, investing in new ventures or hiring a bigger and better team – invoice finance can unlock those options, without the need for facilities like loans.

4. It’s simple to onboard and straightforward to manage

Thanks to our best-in-class digital platform and integration with Xero, there are no lengthy checks, paperwork or hurdles to jump over. Once on board, you don’t even need to duplicate your invoice: just create it in Xero like you always do and get your cash within 24 hours instead of waiting 30, 60 or even 90 days. Once your customer has paid, we make reconciliation within Xero seamless.

5. It removes the stress of waiting to be paid

Long payment terms and late payment can cause stress, anxiety and frustration as well as forcing you to waste valuable time checking and chasing – time you should be spending on building your business. The advantage of Invoice finance is that it removes all of this burden helping you to plan your future with confidence.

6. It removes those awkward chaser conversations

You start a customer meeting talking about all the great work you are doing together, but you know you’ll have to bring up the late payment conversation at the end. Cue awkward payment chaser conversation with the very people you are building a working relationship with!

When you are with Hydr, you are with a company that becomes a genuine extension of your business and finance team, and the very fact that your customer knows that payments are being professionally managed by a third party will positively change the dynamic of your meetings. We’ve also found that it can even improve their payment behaviour.