Invoice Finance
Invoice Finance
Get paid sooner on the invoices you've already sent, so your cash flow keeps up with the work.
- Specialist in Business Lending
- Australia-wide
- No obligation quote
What it is
How Invoice Finance Works
Invoice finance lets you borrow against your unpaid invoices. A lender advances a share of the invoice value soon after you raise it, and the balance, less fees, comes through when your customer pays.
It suits businesses that invoice other businesses on 30, 60 or 90 day terms and are growing faster than their cash. The facility can grow with your sales.
What You Can Use It For
- Covering wages and suppliers while you wait to be paid
- Taking on bigger contracts
- Smoothing out seasonal cash flow
- Replacing an overdraft that has become too small
- Funding a single large invoice
Who it suits
Is It Right for Your Business?
- Businesses that invoice other businesses or government
- Labour hire, transport, manufacturing, wholesale and professional services
- Newer businesses can sometimes qualify, because lenders also weigh up your customers
Key Features
- Advance
- Commonly up to around 80% of approved invoices, lender dependent
- Facility size
- Grows with your debtor book
- Types
- Whole of ledger, selective, disclosed or confidential
- Security
- Usually your debtor book, often with a director's guarantee
A general guide only. Your lender sets the actual terms, rates and fees.
Benefits and trade-offs
The Good, and What to Watch
Benefits
- Funding grows with your sales
- Less reliance on property as security
- Whole-of-ledger or single-invoice options
- Confidential options with some lenders
Trade-offs
- Fees can add up, so compare the total cost
- Not suited to businesses selling to consumers
- Some facilities involve the lender contacting your customers
- Set-up needs some paperwork, such as an aged debtors report
How it works
Three Steps to Funding
Tell Us What You Need
A few quick questions about the finance and your business. It takes about a minute.
We Compare Your Options
We talk it through with you, then match your scenario to suitable lenders from our panel.
Get Funded
We handle the paperwork with the lender and keep you updated through to settlement.
FAQs
Common Questions
Will my customers know?
It depends on the facility. With disclosed facilities your customers pay the lender. Confidential facilities keep the arrangement between you and the lender.
What's the difference between factoring and invoice discounting?
With factoring, the lender usually manages collections. With invoice discounting, you keep managing your own collections. We'll explain which suits your business.
Is invoice finance a loan?
It's a funding facility secured by your invoices. You draw against invoices as you raise them, rather than taking a fixed lump sum.
Ready to Talk Finance?
Tell us what you need. We'll compare lenders and come back with options.