How to Qualify your Business for Invoice Finance
Are you a small or medium business owner facing a cash flow shortfall? It might relate to an upcoming tax payment, or you might need to fund essential business growth. It can be tricky to manage competing cash priorities throughout the year. Especially in conjunction with your regular payment obligations like payroll and supplier invoices.
Many of our clients have tried the traditional bank finance route. In recent months, tightening of lending criteria post the Royal Commission has made this even tougher.
Turning your outstanding invoices into cash in your operating account might sound complicated, but it is not. It involves the process of Invoice Factoring or Invoice Finance. In a nutshell, invoice factoring is an advance from a financier for the value of your invoice less a fee. The invoice payment is then collected from your customer by the financier in due course.
Is Invoice Finance Right for my Business?
Invoice finance is relevant to your business if you provide goods and services to domestic business customers. You must have outstanding invoices awaiting payment relating to completed works.
Some of our potential clients worry that they are not “big” enough to qualify for invoice finance. Your turnover or revenue is not an issue. We have a range of clients. Some factor a couple of thousand dollars of invoices now and again, and others factor hundreds of thousands of dollars of invoices regularly.
Can I have an ATO Tax Debt?
We assess each business on its own merits and have discretion relating to our finance criteria. We build relationships with our client base, meaning you will never be just a transaction to us.
Many of our clients have existing ATO tax debts. We proudly see them use our innovative solutions to help them resolve this over time.
What about my Credit Rating?
Our approval process involves looking into your credit rating. Having said that, you are not automatically disqualified if it is not good. Don't let a bad credit rating stop you from discussing your individual circumstances with our team. Because we have an agile and responsive team we can offer bespoke solutions on a customer by customer basis.
What Qualifies for a Potential Invoice Factoring Solution?
There are three parts to our criteria for being able to provide you with invoice finance. They are
1. Your invoices are factorable:
That is that they relate to a business to business domestic Australian tax invoice. The invoice must relate to goods or services that have been completed and delivered in full on commercial credit terms.
2. Your invoice is assignable:
You are the principle and the invoice is free of any other interest, charges or contractual restraints.
3. Your invoice is collectable:
That is that the debt can be assigned to us, collected in the normal course of business and in an economic manner.
What Information do I Need to Provide to Qualify:
The process is much less onerous than applying for traditional bank finance.
The best way to find out about what is required is to give us a call. Our friendly team are really happy to discuss scenarios with both clients and brokers to find you a suitable and workable solution. And if we find that we can’t help you we can often point you in the direction of someone that can! What have you got to lose?
What Does Invoice Finance Cost to Set Up?
There are NIL set up costs involved in qualifying for invoice finance. There is NO application fee. What’s more there are no long term contracts and NO exit fee.
We can either factor a single invoice or a single client or your entire receivables. The best bit about the process is that it is entirely flexible and the facility can be used as and when you need it.
Are you are up in the middle of the night worrying about how you are going to fund your next stage of business growth? Or how you are going to meet a large supplier payment? Why not apply now to confirm you qualify for invoice finance. Our friendly team will talk you through the process and hold your hand throughout. It is a low risk opportunity to free up cash for much better uses!
Invoice Money is the Invoice Finance provider of choice for SME’s. Get in touch with our friendly team to discuss your requirements. You can contact our team in Melbourne or Sydney here.