Gone are the days of the big four banks being the sole providers of lending in Australia. In fact, with the Banking Royal Commission in full swing and some highly confronting and dirty behaviours being revealed, it’s no wonder the public are having “trust issues” with our traditional lending institutions.
But if you’re looking to finance your growing business or improve cashflow, what are the alternatives to the big four and the traditional ways of borrowing? Invoice financing is an option growing in popularity and when compared to banks, it’s often much cheaper, faster, and more flexible than traditional business bank loans or company credit cards. Unfortunately many invoice financing providers are still financed by banks, thus still affected by the increasingly regulated and opaque operating environment of the banking industry. When looking for a cashflow finance provider, search for peer-to-peer providers, which will help you get the cash you need, allowing you to maintain control and avoid the bureaucracy of the banks. Peer-to-peer invoice financing providers serve the business community as well as a community of investors, creating a mutually beneficial relationship.
Peer-to-peer invoice financing platforms connect businesses and investors. Sometimes known as debtor finance or invoice trading, peer-to-peer invoice financing works to benefit both parties. By purchasing an invoice at a discount, investors have a quality asset paying a risk-adjusted return, while business owners can have their invoices funded before their customer pays – improving cashflow and helping businesses get on and grow.
As opposed to the process of bank lending, peer-to-peer invoice financing aims for quality customer service and flexibility. For example, on the Grapple platform, businesses can sell a single invoice or even a part of an invoice with no setup or ongoing fees or requirements for property security. This is a truly flexible financing option, with cash when you need it and no headaches.
If you don’t like the idea of being beholden to a morally-questionable institution, which doesn’t value its customers, then take action and look for alternative sources of business financing. Peer-to-peer invoice financing is among several “bank-free” options, which offers you service and flexibility and has your business’s interests at heart.