Own your payment terms - Quit Waiting, Start Growing

It is no secret that improper cash flow control can hurt a business of any size. This is especially problematic for small-to-medium enterprises (SMEs) that have smaller cash reserves. Research by U.S. Bank reiterates this as well - poor cash flow management is the main reason behind crippling closures for small businesses.

The life-force behind all SMEs

Revenue and profits are key when running a business. It funds development, ensures that liabilities are taken care of, and, ultimately, enables growth. While all SME operators naturally seek growth opportunities, cash flow management is a common pain point that stands between them and their business achieving its full potential.

Constantly having to negotiate payment terms that work for both you and your buyers can be exhausting, and time consuming. There is a much more professional and discrete solution non recourse factoring, also known as invoice discounting.

The secret to getting paid faster

Seller finance, also known as invoice discounting or non-recourse factoring, is an invoice finance facility that enables business operators to use the value of their sales ledger as leverage to access capital.

Under a typical invoice financing arrangement, for example, a company may sell its outstanding invoices to a provider who pays up to 90 percent of their face value and assumes responsibility for collecting them. Once the invoices are settled, you, the seller, receive the remaining balance minus a nominal fee from the finance company. This provides you with instant access to critical working capital that would otherwise be tied up until your buyer is required to settle their invoice on the due date.

Given that invoice due dates are often 30, 60, or even 90 days in the future as per standard B2B trading terms, seller finance provides business operators with better cash flow and the peace of mind that it comes with this is especially true for SMEs that are more likely to fall victim to cash flow woes due to inflexible payment terms.

With seller finance cash flow can be unlocked without putting forward any assets as collateral; all that's needed are outstanding invoices where payment is due to be paid in the future by your buyers. This system means that SMEs with a large amount of pending receivables can have funds released quickly, hassle and risk-free. As the seller, you retain control over all sales receivables and continue to have the right to manage credit terms and negotiate deals while avoiding invoicing headaches and the risk potential that comes with cash flow problems.

Grow faster with MODIFI

There is a range of different invoicing financing companies available on the market today, and they all work in different ways. However, MODIFI is one of few seller finance providers that puts you, the seller, in full control with customizable and extendable payment terms.

Under the MODIFI Seller Payment model, we guarantee to pay 80 percent of your outstanding invoice balance upfront within 48 hours of goods being shipped. Once your buyer pays MODIFI the outstanding funds as per the terms of your invoice, we then pay you the remaining 20 percent within 48 hours.

MODIFI invoice financing is quick, easy, and pain-free, enabling SMEs to unlock better business cash flow, which can be used to further your growth efforts. What's more, because MODIFI assumes the credit risk of your buyers, you are protected from defaults due to insolvency.

To learn more about how flexible seller finance can help your business manage its cash flow better, contact the MODIFI team today.

Unlock potential with MODIFI

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