Invoice finance

A great way to maintain your cash flow and business flexibility

Invoice finance

Invoice finance is a great way to access your funds while money owed to you is tied up in invoices awaiting payment. In these cases, the unpaid invoices act as security for your loan. You may have also heard invoice finance referred to as invoice factoring, invoice discounting, debtor finance or accounts receivable finance. Invoice finance can be useful to help with cash flow problems when your clients are slow to pay their invoices.

Key points

  • 50-90% of the invoice value
  • Loan terms typically 30 to 90 days
  • Interest rates starting at 0.5% per month
  • Funds can be available in as little as 1 day
  • A great short term solution to maintain cash flow

How does invoice finance work?

Invoice Finance allows you to use your unpaid invoices as security to borrow money for your business. There are two main types of invoice finance: Invoice Factoring and Invoice Discounting.

Invoice Discounting is the more flexible of the two, allowing you to choose which invoice you finance without the need to enter into a contract. This makes it most suitable for established businesses with an efficient accounts receivable department. You can generally receive up to 80% of each invoice you choose to finance and will be responsible for collecting payment from your customers.

Invoice Factoring enables the lender to act as your accounts receivable function by collecting all invoice payments on your behalf and financing you in return. It is suitable for all businesses, particularly if you have a short trading history. Generally you will be required to enter into a contract for 12 months or more and will need to finance all of your invoices. Usually, you can receive up to 80% of each invoice when issued and will be charged interest based on how long it takes your customers to pay.

A FundingPro business loan specialist can help you determine whether invoice finance, or another type of business finance, is right for your business.

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What documents will need to be approved?

Invoice factoring:

  • Copies of recent invoices
  • A list of debtors (companies who owe you money)
  • Financial statements

Invoice discounting:

  • Copies of recent invoices
  • A list of debtors (companies who owe you money)
  • A personal guarantee may be required

How we work with you

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From straight-forward applications to nuanced finance deals. We work with over 70 lenders, from the big four to specialist lenders, to achieve your financial goals.

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Our rich experience across broking, financial services and mergers and acquisitions enables us to bring a well-rounded and informed approach to every deal.

As a business that is growing fast we needed to quickly buy more stock.
Banks couldn’t do this quick enough hence why we turned to FundingPro.
The communication was great and funding was very fast.

 

Courtney Williams
Kiddimoto Australia

FundingPro tailored a finance solution to our needs, assisted with the application process and we were successful in obtaining funds in a very short time at very competitive rates.FundingPro – a definite go to place for finance.

 

Tony Clements
CDM Accountants

Let's chat about your financial goals

With a few details about what you'd like to achieve, we can begin mapping a pathway to get there. It's free to apply and completely obligation-free.

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