MYNDFin

Invoice Financing: A Guide to Working Capital  A business can be profitable on paper and still face a shortage of cash. Sales may be growing, customers may have accepted invoices, and new orders may already be in the pipeline. Yet the money from those sales may not arrive for 30, 60 or even 90 days. Meanwhile, suppliers need to be paid, employees need to be paid, inventory needs to be purchased, and new business opportunities may require immediate investment. This is where invoice financing can become relevant. Invoice financing allows eligible businesses to access funds against outstanding sales invoices before customers make their payments. Instead of waiting for the entire collection cycle to finish, a business can use the value tied up in its receivables to support near-term working capital requirements. The important point is that invoice financing is not simply about getting more money. It is about managing the timing between when a business earns a sale and when it ...