Invoice finance vs business loans: Which is right for you?

Aug 21 2018 in Invoice Finance
Business Loan Structure

If you operate a small business and are looking to gain fast access to extra cash flow, then both invoice finance and business loans can be good choices. In this article, we will explore the advantages & disadvantages of both.

Invoice Finance

Invoice finance works by using your invoices as collateral to gain access to your money now. You can essentially get funds owed to you ahead of time. For example, instead of waiting up to 90 days to get paid by a client for a $500,000 invoice, you can receive up to 90% of the invoice value from an invoice finance company like BCashflow Positive, in as quick as 4 hours.

Some of the benefits of invoice finance are:

– Instant cash flow

– The more sales you make the more cash you can get

– Cover the gap of slow payments

– The process is usually much swifter and easier than securing loans

– Suitable for startups requiring working capital to expand

One of the disadvantages of invoice finance is that it is not suitable for all businesses. To find out whether invoice finance is suitable for your business contact BCashflow Positive today.

Business loans

A business loan is a creation of debt by a business, which is paid back over time with added interest. One of the core benefits of acquiring a business loan is being able to spread out repayments over time.

The downsides of securing a business loan are:

– Business loans typically take a long time to process

– You may have to put up large amounts of personal or business collateral to secure the loan

– You might not be eligible if you’ve not been in business long enough

Making the right choice for your business

If you are in need of quick funding to help seize an opportunity, then invoice finance can be a great alternative. BCashflow Positive invoice finance provides fast 48 hours approval and funding can occur in as quick as 4 hours. We aim to be open and honest with all businesses looking to use our service. That’s why we have a handy calculator, which lets you work out exactly how much you will be charged and how much funding you can get. To find out more call 1300 937 292 today!

What Our Clients Say

❝Getting instant funds from our invoices is crucial to our business success. It means we can pay wages on time and grow our business. The staff are also great to deal with.❞Owner, Recruitment, NSW

❝We engaged BCashflow Positive to get on top of our ATO obligations. Constant cash flow allows us to meet our operating expenses and grow our business.❞Accountant, Earthmoving, QLD

❝Our facility provides us with the buying power we need to stay competitive, and maintain growth. From day one, BCashflow Positive have been very friendly and professional to deal with.❞Managing Director, Wholesale Company, VIC

❝We used BCashflow Positive when our bankers didn’t want to know us, as we operate in an industry that was going to be affected by the introduction of the carbon tax. Traditional lenders were unable to deal with the uncertainty and risks.
BCashflow Positive understood the risk and assisted us with our cash flow, which was great❞Financial Controller, Solar Manufacturing Company, WA

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