Invoice Finance — The Smart Way To Growth?

This article was first published on Stories by Populous World on Medium

Invoice Finance — The Smart Way To Growth?

For SMEs today, getting access to instant working capital is being offered by a wide range of invoice finance providers. Although this non-traditional method of funding might is not entirely well known to many businesses, it has gained a positive perception over recent years and an increasing number of successful business use cases. Invoice finance provider, Populous World, answers some of the most common questions that first time invoice finance users may want to know.

How important is invoice finance to growing businesses?

The evolving industry of invoice finance is becoming increasingly important to businesses that want to achieve fast growth. Imagine a manufacturing company that has to facilitate large or urgent orders, without cash flow there is no fast way to produce the goods. Their crunch point comes when they need to put cash down at the factory, they need to pay the shippers and need to pay all these bills for the materials to arrive at the end destination.

The cash is needed for inventory, stock and labour and invoice finance is the perfect way to fill any cash flow gaps between the date of invoice to the date in which the customer finally pays, which could take up to 90 days. Without immediate working capital available, businesses become stagnant with no funds to operate.

How does emerging technology help Populous World to facilitate invoice finance?

At the core of the Populous World invoice discounting platform is the Ethereum blockchain technology. The idea behind Populous World is to provide a global, peer-to-peer (P2P) platform built on the Ethereum network that connects borrowers and businesses selling invoices, with lenders and businesses that want to buy them. With blockchain implementation, users can bid on an invoice that is for sale, and the seller decides whom to ...

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Stories by Populous World on Medium

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