Improving your Company Cashflow with Invoice Financing

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Updated: August 12, 2020

If you are searching for a way to improve your company cash flow without using property security, then invoice financing might be a great option for your business.

Invoice financing allows businesses to leverage their invoices to generate capital quickly. This will in turn allow you have funds readily available to cover new opportunities or costs such as wages or stock.

Utilising invoice financing can assist you with generating capital in a little as 24 hours and it is available to new businesses as well as those with credit issues. Facility limits range from $10,000 to $100 million, which means that it can support businesses of any size.

What Is Invoice Financing?

Invoice financing – also known as debtor funding or invoice factoring – is essentially a line of credit that is secured by your accounts receivable, rather than your assets. When a business utilises invoice financing, they sell their accounts receivable (invoices) to the factoring lender in order to obtain funds quickly. This means that they don’t have to wait for the customer to pay them in order to utilise the funds. It is a flexible funding strategy and it is not considered a loan because you don’t incur debt.

What Are The Benefits Of Invoice Financing?

  • Speed and Ease of Access

The process is faster and isn’t as involved as a secured asset finance loan. In most cases funding occurs within a day.

  • Assists Business Growth

Receiving late payments from your debtors can put a large amount of strain on your cash flow. Utilising invoice financing gives you the freedom to capitalise on growth opportunities because you will no longer need to wait for your invoices to be paid. Businesses have access to funds without having to constantly re-negotiate on the terms. Long term solutions are available that grow in-line with your business.

  • Flexible Solutions

Tailored to Your Needs Take advantage of a confidential funding arrangement or an end-to-end accounts receivables and collection service that means less time spent chasing up payments and more time securing new opportunities

  • No Property Security Required

You won’t need to offer your home or commercial property as collateral. Your outstanding invoices act as collateral and are all you need to obtain funding

Whether you are looking to expand, increase your working capital or improve your day-to-day cash flow, there are a range of invoice finance solutions available to help you succeed.