You can have a record-breaking month in sales, yet still struggle to make payroll.
One of the most frustrating paradoxes of running a successful B2B company is this: you can have a record-breaking month in sales, yet still struggle to make payroll. The culprit? Commercial payment terms.
The Cash Flow Trap
When you deliver a product or service to another business, you rarely get paid immediately. Standard terms dictate you wait 30, 60, or even 90 days for the invoice to be settled. During this waiting period, your capital is effectively trapped, paralysing your ability to take on new orders, buy materials, or grow the business.
How Invoice Finance Works
Invoice finance solves this instantly. Instead of waiting for your client to pay, an invoice finance provider will advance you up to 90% of the invoice value within 24 hours of you raising it. When your client eventually pays the invoice, the provider gives you the remaining 10%, minus a small facility fee.
It completely eradicates the cash flow gap, allowing you to operate as a “cash-rich” business, taking on larger contracts and negotiating early-payment discounts with your own suppliers.