MarketInvoice versus other financing options
All businesses require working capital, but sometimes you can’t access the cash you need because you have to wait for large invoices to be paid – sometimes for up to 90 days.
You won’t want to use your own money to solve short-term cashflow problems, while selling equity is likely to be the wrong move.
There was a time, when your bank would gladly help you through short-term cashflow difficulties with a loan or overdraft extension, but it’s become much tougher to access to bank finance – as we all know. And even if you are successful, it can take can weeks to sort out – and you’ll probably have to provide a personal guarantee.
Another alternative is factoring, but there are many drawbacks.
Firstly, your business will have to pay monthly fees – whether you need the money or not. Also, you’ll probably be locked into a contract with expensive break fees for 12-18 months.
With Marketinvoice – the more flexible and cost effective way to solve your working capital needs – there aren’t any monthly fees or minimum term tie-ins. You pay only when you sell invoices.
Secondly, a factor will also expect a personal guarantee from you. With Marketinvoice, that won’t be necessary.
Thirdly, a factor can damage your relationships with your customers. When pursuing unpaid invoices they might be much more forceful than you would be. With Marketinvoice, that doesn’t happen. Your customers won’t be hassled and confidentiality is assured.
Finally, factors pick and choose which invoices to discount and typically won’t fund against some invoices, such as exports or stage payments. If you have a proven relationship with your customers, invoices that would be excluded from conventional factoring will attract bids on Marketinvoice.
Marketinvoice is a new and better way to solve your cashflow headaches. And unlike conventional factoring – you stay in control. That’s why businesses from many sectors – including manufacturing, recruitment, consultancy, IT, retail and marketing – are discovering the many benefits of Marketinvoice – the more flexible and cost effective way to solve your working capital needs.
Contact us today to find out how Marketinvoice could help your business.