Invoice finance can indeed increase profits. However, it is important to remember that it depends on what you do with the cash that the facility generates. It definitely increases your costs as you will have the invoice finance fees to pay so you will need to generate enough ‘new profit’ to cover these additional costs.
These new profits can be generated from new sales that took place because you were able to purchase more stock, fulfill more orders or perhaps pay more staff which will generate additional sales.
I have also dealt with clients who are able to take advantage of substantial settlement discounts. Any saving available that is more than the invoice finance costs leads to increased profitability.
In short yes invoice finance can lead to increased profits. However, that will depend on your own entrepeneurial abilities.
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Only today have I dealt with a client with a substantial turnover who can benefit from a settlement discount. The potential increase in profit is in the millions which dwarfs the potential costs.