Invoice and debtor finance
If your customers pay on 30, 60 or 90 day terms but your wages and suppliers do not wait, invoice finance closes that gap. You draw against invoices you have already issued instead of borrowing against an asset or your home.
You issue the invoice as normal. The financier advances most of its value straight away, commonly around 80%, and releases the balance when your customer pays, less their fee.
The invoice itself is the security, which is why this suits businesses that are growing faster than their cashflow and do not have property to offer.
Disclosed means your customer knows the facility exists and pays the financier directly. Confidential means they keep paying you and the arrangement stays private. Confidential facilities usually need a stronger trading history.
You can also choose between funding the whole ledger or picking individual invoices, which matters if only one or two large debtors are causing the squeeze.
Invoice finance is not priced like a term loan. Instead of an annual rate over a fixed term, you pay a discount fee on the amount advanced for the days it is outstanding, sometimes with a service fee on top. The real cost depends on your debtor quality, how fast they pay and your volume.
That makes it hard to quote a meaningful number without seeing your ledger. Send us your aged receivables and we will come back with actual pricing from the panel.
Labour hire, transport, manufacturing, wholesale and trades subcontractors: any business where the work is done, the invoice is out, and the money is 60 days away.
It is usually the wrong tool if your customers pay quickly, or if you invoice consumers rather than businesses.
Do I need property for invoice finance?
No. The invoices are the security, which is the main reason businesses use it instead of a property-backed facility.
Will my customers know?
Only on a disclosed facility. Confidential arrangements keep the financier invisible to your debtors, though they generally require a longer trading history.
Can I fund just one invoice?
Yes. Selective invoice finance covers single invoices rather than the whole ledger, which suits a one-off large job.
Tell us what you are funding and we will benchmark it across the panel. Call 0412 833 197 or request a quote.