{"id":101,"date":"2018-07-10T09:16:02","date_gmt":"2018-07-10T09:16:02","guid":{"rendered":"https:\/\/blog3.indifi.com\/?p=101"},"modified":"2019-08-12T11:40:02","modified_gmt":"2019-08-12T11:40:02","slug":"guide-to-invoice-financing","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/guide-to-invoice-financing\/","title":{"rendered":"The Beginner\u2019s Guide To Invoice Financing \u2014 What It Is And How It Can Benefit Your Business!"},"content":{"rendered":"\n<div class=\"wp-block-image size-medium wp-image-707\"><figure class=\"alignleft\"><img decoding=\"async\" loading=\"lazy\" width=\"450\" height=\"300\" src=\"https:\/\/blog3.indifi.com\/wp-content\/uploads\/2018\/07\/The-Beginner\u2019s-Guide-to-Invoice-Financing\u200a\u2014\u200aWhat-it-is-and-How-it-can-Benefit-your-Business-450x300.jpeg\" alt=\"The Beginner\u2019s Guide to Invoice Financing\u200a\u2014\u200aWhat it is and How it can Benefit your Business!\" class=\"wp-image-707\"\/><figcaption><em>The Beginner\u2019s Guide to Invoice Financing\u200a\u2014\u200aWhat it is and How it can Benefit your Business!<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>Unlike large corporations that have huge budgets, small to medium businesses are often strapped for cash, often due to outstanding payments. They find it challenging, even to carry out regular day-to-day operations. During such instances, business owners often consider business loans to bail them out.<\/p>\n\n\n\n<p>However, this ain\u2019t the smartest approach. The lengthy sanction process, complex processing, and endless documentation mean that finding the right business loan that works for you at the right time is indeed a mammoth task.<\/p>\n\n\n\n<p>This is where invoice financing comes into the picture.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background has-vivid-green-cyan-background-color\" href=\"https:\/\/www.indifi.com\/invoice-discounting-india\">Invoice Discounting Finance<br><\/a><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/guide-to-invoice-financing\/#What_Is_Invoice_Financing\" title=\"What Is Invoice Financing?\">What Is Invoice Financing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/guide-to-invoice-financing\/#Differences_Between_Invoice_Financing_And_Invoice_Factoring\" title=\"Differences Between Invoice Financing And Invoice Factoring\">Differences Between Invoice Financing And Invoice Factoring<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/guide-to-invoice-financing\/#Benefits_Of_Invoice_Discounting\" title=\"Benefits Of Invoice Discounting\">Benefits Of Invoice Discounting<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/guide-to-invoice-financing\/#%E2%97%8F_Improves_Cash_Flow_For_Regular_Operating_Expenses\" title=\"\u25cf Improves Cash Flow For Regular Operating Expenses\">\u25cf Improves Cash Flow For Regular Operating Expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/guide-to-invoice-financing\/#%E2%97%8F_Gives_you_the_Support_to_Expand\" title=\"\u25cf Gives you the Support to Expand\">\u25cf Gives you the Support to Expand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/guide-to-invoice-financing\/#%E2%97%8F_Simple_and_Quick_Processing\" title=\"\u25cf Simple and Quick Processing\">\u25cf Simple and Quick Processing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/guide-to-invoice-financing\/#How_does_Invoice_Financing_Work\" title=\"How does Invoice Financing Work?\">How does Invoice Financing Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/guide-to-invoice-financing\/#A_Fab_Funding_Option\" title=\"A Fab Funding Option\">A Fab Funding Option<\/a><\/li><\/ul><\/nav><\/div>\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Invoice_Financing\"><\/span>What Is Invoice Financing?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Also, known as invoice discounting, this service lets you borrow against outstanding receivables. Instead, of letting your invoices gather dust, you can show these invoices to the lender and receive advance payments for the same. You can then use the money borrowed to expand your inventory or carry out other regular business operations. You then repay the amount, along with a small fee within a stipulated time period.<\/p>\n\n\n\n<p><em>Invoice financing is like an on-demand cash advance that lets you borrow against unpaid invoices.<\/em><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Differences_Between_Invoice_Financing_And_Invoice_Factoring\"><\/span>Differences Between Invoice Financing And Invoice Factoring<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Very often, invoice financing is mistaken for invoice factoring, but the two are miles apart. In invoice factoring, small to medium businesses end up selling their uncollected invoices to a third-party for a hefty discount. To add to the complexity, in invoice factoring your customers end up paying the bill amount to the third-party and not to you. This strains future relationships between you and your customer.<\/p>\n\n\n\n<p>On the other hand, invoice financing helps businesses avail a credit line for unpaid invoices, without impacting relationships with customers.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color\">Also Read: <a href=\"https:\/\/blog.indifi.com\/invoice-discounting-guide\/\">The Complete Invoice Discounting Guide: All That You Need To Know In One Place <\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_Of_Invoice_Discounting\"><\/span>Benefits Of Invoice Discounting<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Improves_Cash_Flow_For_Regular_Operating_Expenses\"><\/span>\u25cf Improves Cash Flow For Regular Operating Expenses<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Very often, small businesses find it difficult to pay bills each month, as they have plenty of outstanding. Instead, of running helter-skelter trying to put together the necessary funds to meet daily requirements, business owners and entrepreneurs can breathe a sigh of relief, knowing that funds are just a click away.<\/p>\n\n\n\n<p>This helps to improve the cash flow for your business, thereby helping you carry out regular operations without affecting the workflow.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Gives_you_the_Support_to_Expand\"><\/span>\u25cf Gives you the Support to Expand<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Apart from providing businesses with funds to meet regular operating expenses, invoice discounting gives you the financial padding to help you develop new products, launch additional services, try out other marketing strategies, purchase new equipment, upgrade your infrastructure, invest in new technology, or open new locations.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Simple_and_Quick_Processing\"><\/span>\u25cf Simple and Quick Processing<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Unlike regular business loans, invoice discounting doesn\u2019t require complicated documentation. Also, you don\u2019t have to submit collateral for borrowing, thereby simplifying the entire process.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_Invoice_Financing_Work\"><\/span>How does Invoice Financing Work?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>\u25cf You provide your client with a service or supply them with products. Once you raise the invoice to a client, you share it with a digital lender like <a href=\"https:\/\/www.indifi.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Indifi<\/a><\/p>\n\n\n\n<p>\u25cf The lender provides you funds close to the invoice amount immediately.<\/p>\n\n\n\n<p>\u25cf Use the funds to meet your regular operating expenses or use it to further develop your business.<\/p>\n\n\n\n<p>\u25cf Repay the lender, when your customer pays you.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color\"><a href=\"https:\/\/www.indifi.com\/invoice-discounting-india\">Apply Invoice Discounting For Small Business<\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Fab_Funding_Option\"><\/span>A Fab Funding Option<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Invoice discounting is an excellent alternative to time-consuming and cumbersome business loans. Instead, of letting your cash getting locked up due to outstanding invoices, you can put your money to work with the help of invoice financing. Whether you\u2019re looking to keep up with seasonal demand, improve cash flow, handle payments or expand your business, invoice discounting comes to your rescue.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlike large corporations that have huge budgets, small to medium businesses are often strapped for cash, often due to outstanding payments. They find it challenging, even to carry out regular day-to-day operations. During such instances, business owners often consider business loans to bail them out. However, this ain\u2019t the smartest approach. The lengthy sanction process, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":707,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[95,29,96,14,18],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/101"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=101"}],"version-history":[{"count":6,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/101\/revisions"}],"predecessor-version":[{"id":1858,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/101\/revisions\/1858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/707"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}