01 Feb Here’s How You Can Grow Your Money While Helping Small Businesses
We spend a lot of money on dining out, sipping premium coffee, having that ‘work hard, party harder’ attitude, excessively trying on beauty treatments, splurging on branded outfits. And every time this happens, we find ourselves wondering, “where did all our money go?”.
At some point, you might have wondered what you could’ve done with your money aside from spending, saving and investing– something purposeful but still profitable.
Our answer: Buying Invoices.
There are more ways to grow your money outside the traditional income-generating streams, one alternative option is buying invoices. But before you Google for platforms that offer this, it is important to understand the big picture why you should start buying invoices.
Challenges of Small Businesses
Small and Medium Businesses play an important role in our economy. They significantly contribute to the GDP growth around the world ensuring proper flow of money across the economy. By being one of the biggest providers of employment, charging lower rates to their clients than large companies, and innovating almost every industry, they drive emerging industries and economies into their fullest potential.
The common problem that these small businesses face is their lack of cash flow to sustain their business as they grow. This happens when their payments from clients get delayed. They need support: guidance from peers and mentors, and most importantly, financial solutions and liquidity. Without funds on hand, these entrepreneurs won’t be able to jumpstart on the next level of their business. They won’t be able to expand, pay their employees or purchase the needed inventory to accept new projects, which would then result to temporarily holding off operations, and possible bankruptcy.
How Buying Invoices Can Help Small Businesses
Through purchasing the invoices from these small businesses, you help convert their receivables to instant cash, thus increases working capital and liquidity without requiring additional collateral, unlike seeking financial support from banks.
How Buying Invoices Can Grow Your Money
As a funder, you can buy invoices at a predetermined discount to the face value, which is set by Acudeen. For each trade, you advance the necessary funds from your e-wallet to the Seller’s account (Small and Medium Enterprises). Upon maturity of the invoice, the full amount of the invoice will be credited your e-wallet and the spread of the full amount and discounted amount will be your profit.
Monthly Discount Rate: 2%
Invoice Amount: 550,000
Days to Maturity: 90 days
Purchase Amount: 517,000
Gross Profit: 33,000
Less Service Fee (25%): 8,250
Vat (12%): 990
Net Profit after 90 days: 23,760
Acudeen Funders earned an average of 25.8% per annum last 2018.
Buying invoices through Acudeen let you focus on your personal goals while working or managing your business if you have one. Being financially empowered allows us to experience a free and fulfilled life: just exactly what we want and need.
You can now do it with Acudeen. Because you’re not just growing your money. You are being part of an economic solution.