Thinking of selling your invoices? Consider more than just the fees. Could your business thrive with this extra cash flow? Here's what you need to know to make an informed decision.

Several factors play a role:

• Your customers' payment reliability
• Your monthly billing amount
• The average value of your invoices
• Your typical payment collection timeframe

Fees range from 2-5% of the invoice value. For instance, a $1,000 invoice at a 3% fee costs you just $30.

When we purchase your invoice, you immediately receive a portion of its value, typically 60-95%. For example, on a $1,000 invoice with an 80% advance, you get $800 upfront. The remaining amount, minus our fee, is paid to you when your customer settles the bill.

Selling invoices might seem costlier than a bank loan, but consider the differences. Bank loans offer lump-sum funding with ongoing interest, whereas invoice selling provides continuous cash flow. With invoice selling, there's no lingering debt, and you potentially access more funds over time.

Even with a slim profit margin of 3%, selling invoices could be the key to increasing your business volume and, in turn, your overall profits. More business means higher profit margins as fixed costs remain largely unchanged.

Compare these two scenarios: Without selling invoices, your net profit on $50,000 monthly sales might be $1,500. But with invoice selling, you could potentially double your sales to $100,000, skyrocketing your net profit to $10,000!

Worried about only receiving 80% upfront? Remember, from your second month, you're effectively getting 97% of your money, considering the rolling advance payments.

If your customers take longer to pay, you have options. You could wait to sell invoices after 30 days or prioritize faster-paying customers' invoices for immediate cash flow.