There are several methods in which a business can get enough funds to meet their urgent requirements. One such method is invoice financing. In this method, the business that require the facility need to suit the invoices of their clients. The lender then gives an amount which is equal to the amount in the invoice and a certain percentage deducted from it. The amount needs to be paid back as soon as the client pays for his invoice. If a business opts for the invoice financing option, it receives the amount required within 48 hours. Sometimes it can be even less than 24 hours. One such service provider who lends money through the invoice financing option within 24 hours is Qupital.
How will your business be qualified for invoice financing?
- Your business’s model should be B2B
In order to be qualified for the invoice financing facility, your business must first be a business to business company.
- Your business should have the ability to pay
This is something very important that you have to prove to the money lenders. You should prove to them that your business is strong and successful enough with several transactions and profits that will enable you to repay the amount that which you borrow. There are some businesses; smaller ones which do not have the ability to repay. If such kind of businesses opt for this money lending option, then it would be a bad idea. This is because they have chances of falling into debts and business failures.
- The quantity and the quality of the invoices you submit
Similar to proving that you are capable of repaying the lender, this is another significant point. The number of invoices you submit and the credit worthiness of your customers play a significant role when it comes to your business being eligible for invoice financing. There are some lenders who even have a number fixed as the eligibility for invoice financing.
Now that you know the conditions or necessary points that determine if you are eligible for invoice financing, choose the best money lending service provider. Do not be in a hurry. Carefully research and compare each of the service providers. Only, after that decide which one is that which is best suitable for you. An excellent suggestion for the best invoice financing service provider in Hong Kong is Qupital.