Most of the clients recommend Invoice Finance/ factoring/ forfaiting to businesses that needed help paying their VAT bills. VAT is payable to the govt irrespective of your collection period. The fines are hefty for delays in VAT payment.
The process would be straight forward to release maybe 70% to 85% of your outstanding sales ledger through an invoice finance arrangement. This working capital could be used to settle your VAT bill.
Other uses of Invoice Finance/ factoring/ forfaiting
- Business Growth
- Paying suppliers
- Souring Raw material
- Paying upfront to get cash discount
- Paying salary
- Paying govt fee
- Working capital gap
