Often for SMEs, receiving a lump sum or an equity investment can generate dilemmas resulting in overtrading or unwanted external influences. In Business Advice, Steven Renwick, CEO of Satago, considers an attractive alternative – selective invoice finance.
Such a facility enables businesses to borrow funds as and when needed – on demand. Renwick writes that “Instead of drawing a lump sum unnecessarily or requiring a costly ‘whole ledger’ facility, small businesses can select which pre-approved invoices they want to draw on. What’s more, they can also selectively draw on the invoices they know will be repaid the soonest – enabling business owners to minimise their accrued costs.”
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