Cashflow Covered
Using Invoice Finance

5 ways invoice finance can help your business post-lockdown

April 26, 2021 | 5 minutes

As we move towards a post-pandemic future, many businesses will be looking for a cash injection to help them build back better.

Here are five ways invoice finance can help your business ease cashflow, fund future projects and grow in the coming months.

Access cash fast

Securing a business loan can be a slow process. In April, the Government introduced the Recovery Loan Scheme (RLs) to fill the void left by the Bounce Back Loan scheme (BBLs) and the Coronavirus Business Interruption Loan scheme (CBILs). But with many alternative lenders still to be accredited, it’s unclear how effective RLs will be in delivering cash to businesses quickly.‍

The benefit of invoice finance is that it’s fast and relatively hassle free. Satago integrates with your accounting software and uses open banking to make the process even faster. Often, we’ll give you the money within 24 hours of approval.

Grow your business

As the economy kickstarts after months in lockdown, your business might be low on cash. Without reserves in the bank, it’s difficult to fund new projects, meaning you could end up turning down work and stunting your company’s growth.‍

If you find yourself in this situation, invoice finance can help by giving you the cash you need to scale your business.‍

Luna & Fennel is an independent pizza company who were going through an exciting growth phase in 2020. They needed cash to support their expansion into major supermarkets and so they applied for a single invoice finance facility. Satago were happy to provide them with the funds they needed to fuel their expansion.

Offer more generous credit terms

After a challenging year, your customers may need longer to pay. If you have a trusted client who you’re happy to offer longer credit terms, invoice finance can help you keep your cash flow on track while you wait for payment.

By offering trusted customers longer credit terms, you may find you’re able to secure more work. Always credit check your customers before offering generous credit terms to protect your business from late payments and bad debt.

Access funds without assets

Business loans will generally require security. If your company has assets, such as property or equipment, you can use them as collateral when applying for a loan. If your company does not have assets, the lender may ask to use personal assets, such as your house, as security.‍

The great thing about invoice finance is that it is unsecured lending. You may be asked to sign a debenture or personal guarantee, but we won’t take a legal charge over your home. That’s because the invoice itself serves as security. As long as your invoices are within payment terms and your customers have a good credit score, you can advance up to 85% of their worth without putting your personal assets at risk.

Stay flexible

If you don’t want to be in debt for months or years, we have the answer.‍

Unlike some providers, Satago’s flexible invoice finance won’t tie you into financing your full sales ledger. Pick the invoices you want to fund and use the service on a pay-as-you-go basis.

Kladworx Ltd is an external façade company run by husband and wife, Peter and Katy Overton. They approached Satago because they wanted a flexible solution to help them ease cash flow.‍

“I’ve used invoice factoring in the past but found it inflexible.” Says Peter, “We wanted a system that would be versatile and that was moving with the times. We soon had the account set up, and were financing our first invoice, which it must be said was in our bank within hours of approval.”

If you’d like to learn more about how Satago can support your business with invoice finance, please get in touch with the team or apply through the platform.

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