Ensuring cash flows into your business
Get Paid Instantly Instead of “Someday”
Invoice financing helps businesses make predictable moves and better decisions. We can free up access of capital by providing up to 85% of the value of unpaid invoices on the spot; instead of when terms are due. This gives small businesses the peace of mind and regularity of cash flow to help them manage their day-to-day expenses, payroll, or bankroll inventory. We can finance invoices ranging from $10,000 up to $1 million.
Flexibility, security, and growth-minded
According to ASIC, 46% of all company failures occurred due to inadequate cash flow (2015/16). When small business is kept waiting for funds to come in, shortfalls can snowball and cause trouble. Invoice financing is a fast and easy utility that uses an invoice as a security to forward you cash instantly. Funds are available within 24 hours, and a dedicated consultant is on call to help you through the process.
Invoice financing the Savvy way
What our customers say about their finance experience
The most frequent invoice finance questions answered
Guides to maximising your invoice finance experience
There are many benefits to invoice financing and the number one businesses enter into invoice financing is smoothing out bumps in cash flow. Waiting for cash flow can cripple a business. They may not be able to pay their employees or order more inventory. Short cash flow can also restrict a business in how they can grow or take advantage of opportunities. It also frees up resources on staff, who may need to chase up invoices and other financial services.
A factoring fee is the amount a lender takes to recoup the costs of lending money on an unpaid invoice. For a $100,000 invoice that fronts 85% with 15% in reserve, the fees are taken out of the $15,000. A NET 30 invoice may attract a factoring fee of 1% per week; therefore the $4,000 is taken by the lender (minus any processing fees) and the remainder is given to you. Sometimes, the factoring fee will be determined by the level of risk borne by the lender.
If you run a business, you have had to deal with clients who are late on paying invoices. One step is to address the elephant in the room and prepare for implementing payment plans if necessary. Sometimes letters of demand and legal action are required. A second plan is to use invoice financing so the debtor arrangements are handled by a third party, which can ease strain on business relationships.
Did you know it takes an average small business 14.4 days to pay an overdue invoice? This stretches to 18.2 days for larger businesses. For an SME, this can be an eternity. Figuring out your high-risk debt areas and working to minimising it can increase cash flow. The bottom line is driving more sales more often. Liquidating overstock inventory is often better than leaving it on shelves where it is costing you more.