Unlocking Business Growth with Combined Inventory and Invoice Finance Solutions

Access to working capital remains one of the biggest challenges for businesses aiming to grow. Many companies struggle to balance cash flow while managing stock and outstanding payments. A new lender on the Atlas panel offers a combined inventory and invoice finance solution that can help businesses unlock growth potential by addressing these challenges in a flexible way. These services can also be used separately, depending on the company’s needs and circumstances.

This post explores how combining inventory and invoice finance can support business expansion, the benefits of using these financial tools, and how international businesses can take advantage of this offering. For personalized guidance, businesses are encouraged to contact Atlas for support.

Inventory finance supports stock management

How Inventory Finance Supports Business Growth

Inventory finance provides funding based on the value of stock held by a business or the creditworthiness of that business. This allows companies to free up cash tied in inventory and reinvest it in operations, marketing, or new product lines. Instead of waiting for stock to sell before accessing funds, businesses can use inventory as collateral to secure working capital.

Key advantages of inventory finance include:

• Improved cash flow: Access funds without selling assets or diluting ownership.

• Increased purchasing power: Buy stock in larger quantities or at better prices.

• Flexibility: Use funds for various business needs, from production to expansion.

• Reduced pressure: Avoid cash crunches during seasonal demand spikes or supply delays.

  
  

For example, a retailer preparing for a busy season can use inventory finance to stock up early, ensuring they meet customer demand without cash flow issues. This approach helps maintain steady operations and supports growth plans.

How Invoice Finance Helps Manage Cash Flow

Invoice finance allows businesses to borrow money against unpaid invoices. Instead of waiting 30, 60, or 90 days for customers to pay, companies can receive immediate funds based on outstanding invoices. This speeds up cash flow and reduces the risk of late payments affecting operations.

Benefits of invoice finance include:

• Faster access to cash: Improve liquidity by converting invoices into immediate funds.

• Reduced credit risk: Lenders often handle credit checks and collections.

• Support for growth: Use funds to invest in new projects or cover operational costs.

• Flexibility: Finance can be tailored to specific invoices or ongoing receivables.

  
  

A manufacturing company with large orders but long payment terms can use invoice finance to cover payroll and supplier costs without delay. This keeps production running smoothly and supports scaling up.

Invoice finance accelerates cash flow

The Power of Combining Inventory and Invoice Finance

Using inventory and invoice finance together offers a comprehensive solution for working capital needs. This combined approach provides businesses with more control over cash flow and greater financial flexibility.

How the combined solution benefits businesses:

• Balanced cash flow management: Cover both stock purchases and outstanding payments.

• Reduced reliance on traditional loans: Avoid long approval processes and rigid terms.

• Tailored funding: Use each service independently or together based on current needs.

• Support for international operations: Access finance across multiple jurisdictions.

  
  

For instance, a company importing goods from overseas can use inventory finance to pay suppliers upfront and invoice finance to manage receivables from international customers. This dual approach smooths cash flow across the supply chain and sales cycle.

Using These Services Across International Jurisdictions

Many businesses operate across borders, facing different financial regulations and market conditions. The new lender on the Atlas panel offers solutions that accommodate multiple international jurisdictions, making it easier for companies to access finance globally.

Considerations for international use:

• Currency flexibility: Finance available in various currencies to match business needs.

• Regulatory compliance: Solutions designed to meet local financial regulations.

• Cross-border transactions: Support for import/export financing and international invoices.

• Local market knowledge: Expertise in regional business practices and risks.

  
  

This global reach helps businesses expand into new markets without being held back by cash flow constraints or complex financing hurdles.

How to Get Started with Combined Finance Solutions

Businesses interested in these finance options should start by assessing their working capital needs. Understanding cash flow cycles, inventory turnover, and customer payment terms helps determine the best approach.

Steps to take:

• Evaluate current cash flow challenges: Identify gaps and bottlenecks.

• Decide on finance type: Choose inventory finance, invoice finance, or both.

• Prepare documentation: Gather inventory records, invoices, and financial statements.

• Contact Atlas: Seek expert advice and connect with the new lender on the panel.

• Review terms carefully: Understand fees, repayment schedules, and conditions.

  
  

Atlas provides support throughout the process, helping businesses find the right solution and navigate international requirements.

Practical Examples of Business Impact

• A wholesaler used inventory finance to increase stock levels before a major trade show, resulting in a 30% sales increase.

• A service provider leveraged invoice finance to smooth cash flow during a rapid client expansion, avoiding delays in hiring and equipment purchases.

• An exporter combined both services to manage supplier payments and customer invoices across three countries, enabling faster growth and improved supplier relationships.

  
  

These examples show how tailored finance solutions can directly support business goals.