Are your clients paying their invoices in 30 to 60 days? Are you unable to wait for payment because you need the money sooner to pay suppliers, wages and other expenses? This problem is common for many companies who can’t afford to wait to get paid by clients.
Invoice factoring can solve this problem and provide your company with immediate funds to pay expenses and to grow your business. When used correctly, invoice factoring provides predictable cash flow and a platform for growth.
How does invoice factoring work?
Invoice factoring accelerates your revenues by financing open invoices that are due in 30 to 60 days. Instead of waiting for payment, you get immediate funds which you can put to work in your business.
Most transactions are financed in two instalment payments. The first payment – often referred to as an advance – covers about 80% of the total value of the submitted invoices. Your company gets the advance within a day of submitting the invoices for financing.
The remaining 20%, less the financing fee, is deposited to your account once your customers pay their invoices on their regular schedule. For a more detailed explanation, read “How Does Debtor and Factoring Financing Work?”
High factoring advances
One of the most important features of a factoring plan is the advance – the funds remitted to your bank account as soon as you submit invoices to the debtor finance company.
We can provide competitive proposals with high advances. Advances range from 80% to 95% and vary depending in your industry, your experience and the credit profile of your clients.
We offer competitive terms with reasonable costs. Specific term details are based on the transaction risk, quality of the invoice and other parameters. For an instant cost estimate, fill out the quote enquiry form.
Invoice factoring can benefit your business in many ways. The financing line:
- Is available to small business that have no credit history
- Provides you with money quickly
- Improves your cash flow
- Is easier to get than business loans
- Allows you to offer net 30 to net 60 days to clients
- Is often a better solution than bank overdrafts
- Can be set up quickly
For more information, learn about the client benefits of debtor finance.
Qualifying for our programmes is easier than qualifying for most conventional financing plans. The most important requirement is that you sell products/services to other businesses who pay their invoices reliably in 90 days or less.
Additionally, your company should:
- Have invoices that are not encumbered by liens
- Be free of legal problems
- Be free of tax problems (or be willing to work out a plan)
Is invoice factoring right for you?
Our solution is usually right for your business and can help you if:
- You can’t afford to wait up to 60 days to get by paid by your clients
- You work with quality commercial clients
- You have good profit margins
Factoring invoices can usually work with any transaction in which a business is invoicing another business on 30 to 60 day terms. Factoring is popular in many industries including:
- IT consultants
- Manufacturing companies
- Import companies
- Office supply companies
- And others
- Low rates: Competitive rates for qualifying clients
- High advances: As high as 90% for certain industries
- Flexible lines: Based on your actual needs and projected growth
- Easy qualification: Simple requirements and easy paperwork
- Quick setup time: We do our best to get your account set up quickly
- Quick funding: We do our best to fund you the same day we get your invoices
- Instant online estimates: To get a cost estimate, fill out this form
Need more information?
Are you looking for an invoice factoring company? We want to help you make an informed decision about working with us. You can learn more about our programmes by visiting our resource centre.
We provide debtor financing and invoice factoring services to companies throughout Australia, including: