You don’t always think about the cost of waiting. But in reality, the time you’re waiting for your clients to pay your invoices may in fact cost your company quite a lot. That money could instead have been re-invested to further growth, accepting new clients, hiring staff or buying needed equipment.

If you don’t want to get tied up with bank loans or set up complicated overdraft facilities with your bank there are easier ways to finance your business.

Calculate your company’s credit time in 3 simple steps:

  1. Take your company’s turnover
    (e.g. let’s say your company has a turnover of 16 Mkr/year)
  2. Take the outstanding accounts receivables
    (e.g. let’s say they are 2 Mkr)
  3. Calculate the credit time by taking the outstanding accounts receivables and divide those by the turnover. Multiply the result by 360. (e.g. 2 Mkr/16 Mkr x 360 days = 45 days)

How much capital can you release?

Scenario 1: you take actions that reduce the credit time by 10 days (10 days x 16 Mkr / 360 days = 444 444 kr)
Scenario 2: you take actions that reduce the credit time by 20 days (20 days x 16 Mkr / 360 days= 888 888 kr)

How to reduce the credit time to release capital?

One way to release your own capital, currently tied up in account receivables, is to sell the receivables through factoring. That way you can get paid already the day after you send the invoice, instead of waiting up to 120 days for payment.

At Invoier you sell your invoices at a transparent and fair marketplace, where buyers compete to buy your invoices. On average clients usually get paid 97-99% of the invoiced amount.

Start selling invoices without binding agreements and decide yourself how much and when you want to sell. Having an account at Invoier’s marketplace is free and, should you decide to at any point, you can of course leave, without any notice period.

Which factoring service would suit you best?

Factoring can be done in several ways depending on the main goal and individual demands.

Interested in factoring?
Let Patrik tell you more

20 years of experience from the financial industry with senior positions within SEB, Ikano Bank and Aros Kapital. At Invoier, Patrik is responsible for partner contact and sales.