Here are some of the key benefits of receivables finance:
The receivables financier will sometimes take on the responsibility to look after your sales ledger which means more time to focus on the business
A receivables financier will conduct know-your-customer or due diligence on clients and suppliers, in order to assess and price any possible risk of default
Receivables discounting can also be done in a confidential manner (confidential receivables discounting), which means that your clients won’t know that you are using a discounting facility; one for consideration when it comes to reputation
Receivables finance can also help businesses grow their trade lines and fulfil customer orders without having to worry about working capital and cash flow cycles