Our finance service can turn your invoices into cash as you generate them. No more waiting 30, 60, 90 days or more. This means your working capital is driven directly by your current sales. The more sales – the more cash. Unlike an overdraft there is no fixed limit and need to renegotiate as you grow. Good cashflow places you in a strong position with suppliers and makes offering settlement discounts unnecessary.
Well-established businesses with their own effective credit control and collection systems will use this service. This gives them the flexibility of sales linked financing, but they use their own credit control systems. This maintains the confidentiality of the service because neither your customers nor your competitors need know of our involvement.
How does it work?
Invoice Financing is a very easy process to implement and maintain. We undertake our due diligence process and once approved, we then offer you a facility. Because we are not constrained by a bank's rigid risk policy and rulebook, this approval process usually takes no more than 24 hours.
Once approved your ledger is then duplicated on our system. This means that you can draw funds from us within 24 hours of completion of the due diligence process. Imagine that, you now have access to cash from your invoices as you continue to make sales.
Typical General Criteria
May be an established business or new venture
Looking for additional working capital to fund growth / Acquisition / Equity release etc.
Will typically have an annual turnover $500k+
Have sales to trade customers on credit terms with a high level of repeat business
Have low levels of customer returns i.e. sale or return terms wont suit invoice finance
Our Service Commitment
Traditionally, businesses have obtained working capital through a bank overdraft facility. The downside of this arrangement is that the bank overdraft is capped and doesn’t grow at the same rate as the business.
Invoice Finance is the modern alternative to an overdraft. The number of companies, in Australia and New Zealand, using this flexible service has grown by up to 30% each year for the last five years. One of the main benefits is that, unlike a bank overdraft, finance grows at the same rate as the increase in sales and is not linked to the value of additional security.
Find out more about how our Confidential Invoice Finance facility works.
Frequently Asked Questions
Q. What is the difference between Factoring and Invoice Finance?
A. Under both facilities you assign your invoices to obtain immediate cash flow, but with Invoice Finance your facility is confidential and therefore not disclosed to your debtors or competitors.
Q. What are the costs?
A. There are two costs involved with Invoice Finance.
The first is an administration fee for maintaining your shadow ledger on our system.
The second charge is a interest charge calculated on actual amount of funds drawn from your facility. The interest rate on these funds is comparable to those charged by banks for overdrafts. To find out more contact our office for an obligation free quotation for your particular business. You'll be pleasantly surprised at how little it costs.
Q. Do I need to provide Real Estate security?
A. Invoice Financing is secured primarily by your debtors' ledger. Real Estate security is not required and is a major point of difference between a bank overdraft and Invoice Finance.
Q. What about bad debts?
A. We offer a 3rd party service that covers non-payment of invoices, over an amount agreed with you at the commencement of your facility. Payment of credit approved and undisputed invoices are made within 120 days of the invoice due date. This product is utilised by our export customers outside New Zealand and Australia in the main
Q. Does my business qualify?
A. Check the general criteria above and if you are still unsure contact someone in our office to discuss your particular business.