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What Is Invoice Finance?

If you manage your own business you probably would have heard of the term Invoice Finance by now. If not you may have heard it referred to as “invoice factoring”, “invoice discounting,” “discreet factoring” or simply “factoring.”

Invoice funding assists businesses with their cash flow position. It allows you to access funds against the sales invoices you have issued to your clients before they’ve paid them. Basically you’re using the money you’re owed!  

Benefits of Invoice Finance

Many businesses benefit from invoice financing as it allows them to maintain their business while they wait for big clients to pay their bills, particularly during periods of growth or seasonal busy periods. There’s no point in missing out on picking up your next client just because you’re waiting on the capital to come in from your previous client.

By borrowing against your unpaid invoices rather than property or assets, your credit limit is based on the strength of your business and equity in Real Estate rather than what you already have.

You can use the funds for whatever your business needs; equipment or supplies necessary for your next job, vehicles or expansions to meet growing demand, wages to keep your staff bringing in revenue, or even to allow some breathing space with the ATO!.

Another Major benefit is we can have funds in your Business Account within 48 hours and even the same day for additional transactions between you and the same Debtor!

Drawbacks of Invoice Finance

Invoice finance does involve Costs. This is why you usually can’t borrow more than 80% of the invoice you’re funding against. We have happy to discuss with you our straight forward fee structure.

Your ability to borrow also depends on the quality of the business you’ve invoiced. Some finance providers have restrictions on Debtor Concentration (1 Debtor is 50% of your Business) or you need to meet minimum turnover requirements. This doesn’t break the deal here.

How do I apply for Invoice Finance?

If your business is waiting on invoice payments in order to go ahead with other jobs it may be worth looking into Invoice financing.

To discuss your options and what we can do for your cash flow, contact Gold Coast Finance. You can even apply online now to get things moving today.