Invoice
Factoring
Invoice Finance Factoring, also known as ‘accounts receivable finance’ or simply “factoring”, is a type
of business finance that can offer a quick boost to your cash flow.
of business finance that can offer a quick boost to your cash flow.
Invoice Factoring
Small businesses often struggle with having enough cash flow to sustain the business. Invoice factoring is a helpful way to keep up with the amount of cash owing to your business, especially when you need money as soon as possible.
- Up to $2 million
- Short term
- Low interest
- Quickly set up: 3-5 days application process
Please fill out the contact form. One of our experienced finance brokers will get in touch with you to discuss your needs.
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What is invoice factoring?
An invoice factoring solution is when a third party (a factoring company) can buy your invoices in exchange for a lump sum of cash. Then, the factoring company owns the invoices, and they get paid when the late invoices are paid. Instead of waiting for your payment through invoices, you receive immediate funds to continue the business running. Most of the time, businesses will receive 80% of the invoice value immediately. Depending on arrangements, the collection of invoices can be managed by the factoring company.
What is the real benefit of invoice factoring?
For instance, a customer buys your product for $5,000. However, they agreed that the invoice would be paid within 30 days. You have urgent fees, wages and expenses to pay tomorrow. A factoring company can buy invoices (that you are waiting to be paid) at a discounted price for immediate cash. For instance, if it was discounted, the business will receive 80% of the invoice value. In this circumstance, the business would receive $4,000. The balance of the invoice once paid would be paid to the business by the finance company less their costs of finance.
(Totally free process – ask about our pre-approvals with no credit checks)
or Call us now at
1300 198 514
Any other benefits for invoice factoring?
There are some significant benefits to factoring, especially the immediate cash injection for your business. Other advantages include:
Bridging the gap between slow payments
No waiting – have the immediate cash flow to keep your business going
Be ahead of ATO obligations
Use early repayments to grow your business
No collateral, credit score and loan history
Easier to receive than business loans
When considering invoice factoring, it is also important that borrowers understand the cons
- Total costs could be higher than other small business loans: when choosing a provider take into consideration any hidden cost (admin fees, transfer charges and any penalties).
- The profit margin reduces on each invoice sold
- Damaging the relationship with your clients: amounts due could be aggressively collected when selling your invoices. You are also indicating your clients that you have a cash flow problem, and they may decide to stop dealing with you.
- Limited opportunity to do business with specific clients: some lenders, when checking the credit rating of your clients, may try to limit you to deal with high-risk clients.
What’s next? How to apply for invoice factoring?
Partnering with over 50+ business loan providers at Sure Capital, we unlock credit opportunities for your business. Our clients in 99% of the cases get the money in their bank account within 24 hours from the application.
Thanks to our industry knowledge, we guide you through the process to find the lender that can provide the type and size of business loan that you are looking for. Our lenders fund eligible small businesses with invoice factoring. Let us help you to find the one that suits best your needs. It all starts with an enquiry. Call us 1300 198 514 or click on “see if you qualify” and we call you back to see if you qualify for invoice factoring.
Our lenders usually require a combination of the below as a part of an application:
(Totally free process – ask about our pre-approvals with no credit checks)
or Call us now at