Why Use Invoice Finance

Invoice Finance is a popular solution for businesses seeking to improve cash flow and release funds tied up in unpaid invoices. Here are some of the key benefits:

Unlocks Cash: Invoice Finance allows you to access cash against your business-to-business invoices without waiting weeks or months for payment, while still offering favourable payment terms to your customers.
Improves Cash Flow: By unlocking the value of unpaid invoices, Invoice Finance enhances your cash flow, enabling you to manage day-to-day business expenses more efficiently and ensuring smoother operations.
Saves Time: Invoice Finance reduces or eliminates the need for internal invoice ledger management, freeing up valuable time that can be better spent on running and growing your business.
Flexible Facility: The facility grows with your turnover. As your sales increase, the available funding rises, offering a flexible solution to support business growth.

Whether your business needs cash flow improvement, financing for growth, or asset purchases, Invoice Finance provides a practical solution, as long as your business has turnover to unlock.

Starting a Business With Invoice Finance

Starting a business is exciting, but it comes with many challenges. One of the most significant issues that new businesses face is poor cash flow and delayed payments.

In today’s economic climate, traditional finance routes like bank lending have become harder to access. Banks often require substantial security and personal guarantees, and their interest rates can be prohibitive. Angel investors and venture capitalists are also more selective, often demanding too much control.

Invoice Finance offers a quicker, more flexible way to raise funds. Factoring or Invoice Discounting can provide immediate funding against invoices you raise. Even for start-ups, as long as invoices are being generated, Invoice Finance is an option, unlike traditional bank loans.
Factoring also removes the burden of managing credit control, allowing you to focus on growing your business rather than chasing payments. As your business expands, Invoice Finance facilities grow with it, and when paired with Bad Debt Protection, your cash flow is secured.
If you’re interested in how Invoice Finance can help your business get started, get in touch, and we’ll find the best facility for you through our independent broker network.

Business Growth

As your company grows, one of the biggest challenges is financing that growth. Investments in infrastructure, inventory, staff wages, marketing, and premises expansion all require significant capital.

If your business doesn’t have large cash reserves, like most companies, Invoice Finance can help by unlocking cash tied up in unpaid invoices. This allows you to fulfil new orders without negatively impacting cash flow.
Factoring and Invoice Discounting services can advance up to 90% of your invoice value within 24-48 hours after issuing the invoice, with the balance paid once your customer settles the invoice. As your business grows, so does the funding available, ensuring you can meet increased demand without financial stress.

Combination of Invoice and Asset-Based Lending

In addition to Invoice Finance, we specialise in unlocking the hidden value of your assets. Many businesses possess non-debtor-based assets like stock, plant machinery, or property that can be leveraged. By combining Invoice Finance with Asset-Based Lending, businesses can free up anywhere from AUD 100,000 to over AUD 20 million, allowing you to fund growth and maintain a lean operation.

With our independent finance broker network, we can also source Import and Export Finance options for businesses with overseas operations.

Decline in Bank Lending

In recent years, bank lending has declined significantly, making it difficult for businesses to access traditional financing options. Even when overdrafts or loan facilities are available, the terms are often restrictive, particularly for newer businesses that lack several years of positive accounts.

As a result, many businesses are turning to alternative financing solutions like Invoice Finance, which offers a more flexible and accessible option. Unlike traditional loans, which come with rigid terms and conditions, Invoice Finance grows with your business and is based on your receivables, ensuring it stays aligned with your needs.