The advantages of traditional business invoice financing include freeing up working capital, as well as the following benefits:
Speeds up the cash conversion cycle Retains control over receivables Provides flexible terms
With business invoice financing, you can continue to extend net terms, fulfill large orders, handle emergencies, and grow your business since the company will have a ready source of funds.
While business invoice financing works like a collateralized loan, it is not a loan. From the lender's perspective, business invoice financing means buying unpaid customer invoices.
Lenders will advance funds based on the value and quality of uncollected invoices. With invoice financing, the lender will not assess your company’s ability to pay, but they will focus on customer payment history. While invoice financing has advantages, it can be costly for your business and challenging to manage.
However, Apruve combines accounts receivable automation with trade credit programs to turn traditional invoice financing into an embedded net terms option for business buyers, and funding the seller overnight.