Invoice Finance Factoring

Invoice Finance Factoring, also known as ‘Debtor Finance’, is a type of invoice finance that gets you paid a high percentage of the amount owed, immediately. Instant income from receiving a high percentage of your invoice value, is great way to provide positive cash flow to your business, rather than having to chase debts. You’ll never have to worry about a late payment, and you’ll be able to focus on more productive tasks, than chasing unpaid invoices.

Invoice Financing Australian businesses is popular as a business loan because it works like a pre-approved line of credit. This helps turn your outstanding invoices into immediate cash for your business. These facilities are useful for businesses who’s debtors are particularly slow payers, and where immediate payment of the invoice is required to cover ongoing costs of labour, materials, new opportunities, other lending commitments, and even Tax Debt. Simply issue the invoice to your client and provide a copy to the third party lender. The finance provider ensures funds are available in your account within a couple of days.

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Our Invoice Factoring Finance Promise

We’ll start by finding out what makes your business tick. What are your business’s working capital requirements? How profitable is your business? What could an injection of working capital do for your business growth? We’ll then get to work customising a lending solution that works for you. You may be a business that only needs a few invoices funded from time to time, or you may be getting set for a rapid growth period that requires every dollar you can get your hands on. Either way, we’ll weigh up the options and explain the pro’s/cons, costs/opportunities associated with each of these so that you can make an educated call on which route to take.

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Finance Brokers That Help With Business Cash Flow

We’ve been working with Sunshine Coast Businesses for over 10 years. We get it. We understand the difference between cash flow and profitability. We understand how negative cash flow keeps business owners up at night and prevents the machine from growing. We understand that most business owners would prefer not to tie their property up as the security for funds to run their enterprise. We know that business owners are at their very best when their business is pumping. We’re business owners ourselves, and we live and breathe this stuff just like you.

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Documents For Your Lender

The documents you’ll need to provide for Invoice Finance may vary depending on the lender. At the very least, you may need to provide the following;

  • Statement of position: The lender will want a clear picture of your current assets and liabilities
  • ID: As with any finance application, you will need to supply clear copies of your Driver’s license and Medicare card
  • Statements: We can send you a link so that you can authorize your bank to send us your statements
  • Balance sheet: A copy of your current balance sheet can be found in your accountant prepared financial statements for the most recent tax year
  • Debtors/Creditors report: Your Debtors/Creditors report shows the lender the balance of your current outstanding invoices as well as the invoices you are yet to pay

We won’t ask you for more than we need, but we will always ask for everything upfront. This helps us to ensure that we can provide the best solution, the first time.

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The Mortgage Broking Process For Invoice Finance

Getting a home loan isn’t always a walk in the park—it can be a bit of a process, but if you team up with one of our mortgage brokers, we’ll have your back every step of the way, making sure you’re on the right track from the get-go.

  • Initial Chat: We’ll start with a detailed chat to find out what makes your business tick. What are your business goals? What does your cash flow look like? and what is your financial position?
  • Collect your information: We’ll then send you a small checklist and some links to provide the information we need to analyse your options
  • Discuss the options: Next, we’ll show you our findings and discuss the pros and cons of the options available. This may include cash flow modelling and the affects of loan costs on your P&L
  • Apply for the loan: Once you’ve decided exactly what limit, product, and structure you would prefer, we’ll get to work on arranging your approval.
  • Draw down: Draw downs for Invoice finance work a little differently from most other loan types, as you’ll draw your loan down each time you create an invoice. Once your invoice is paid by the debtor, a portion of your loan is paid back. This cycle continues until such time that you no longer require the facility.

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Invoice Finance Support

So here’s how we keep things simple for you.

  • Since Invoice Finance is an un-regulated finance product and security is taken over the invoices themselves, the application process is usually pretty simple. We have plenty of experience in these loan types and will make sure we take your loan to a lender that wants to work with you.
  • Invoice Finance is a very unique loan product. While it has benefits, it also comes with very different fee structures. We’ll make sure you have a good understanding ofg these so that you can factor the costs into your business.
  • Once your facility is approved, your accounts team will need some guidance on how to manage the invoices and draw funds down from your facility. We’ll make sure they have all the help they need so that payments aren’t missed, and you can focus on running your business.
  • Invoice finance is often seen as a short-term solution. If your business is profitable, then it’s only a matter of time before your working capital catches up with your cash flow requirements. We’ll be here to analyze the numbers with you and make sure your business is comfortable without the facitiy before you finalise the loan.

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How Can Invoice Finance Help Business Growth?

Invoice finance can provide an almost immediate working capital injection for your business. This may be used to fund new jobs, clear ATO debt for future loan applications, buying stock, or covering wages. Working capital requirements are often quite high for rapidly growing businesses. If your business is growing fast, it may be worth chatting with us to see if Invoice Finance is a good solution for you.

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Why Use A Broker When Applying For Invoice Factoring Finance?

Invoice Finance facilities are offered by some of the majors. However, these banks often require full vision of your trading figures and will generally want to hold property as security and take on any external lending facilities. We also have access to non-bank lenders who work specifically in the Invoice Finance space. Their approval process is fast. They won’t want to use your property as security, and their systems and processes are set up specifically to make sure that the ongoing management of your drawdowns and payments is smooth and simple. You don’t necessarily pay more for these lenders, and you don’t have to provide your organs in order to get the loan set.

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Customer Reviews & Comments

Instead of talking our finance brokerage up, read our customer reviews. This is a direct feed from our Google business reviews, so you know it’s 100% genuine.

Adrian Chrisanthou
12/4/2024

Thanks so much Brett for your professionalism and tenacity in regards to getting my deal done with loanright. I look forward doing business with you in the future as I found the experience seemless and timely. Keep up the great work Brett and team

Rosalyn Taylor
12/4/2024

Brett and Alicia were a fantastic team to work with. Efficient, knowledgeable and supportive. They made the process so much easier than it could have been. Highly recommend!

Nicholas Hopkins
12/4/2024

Luke and his fantastic team will take care of everything, An honourable mention to Deb Moss for meeting me at 6 am at a BP station to sign docs on here day off to enable me to get the house I had been chasing for months. Ledgends. Have dealt with Luke and his team before and will use them again and again their service is second to none.

Tim McGary
12/4/2024

OMG!! These guys are next level good. They have just settled our new home loan and we had another guy that took 4 weeks and did nothing. We then called these guys after a friend said they were amazing. They got us a home loan approved from start to finish in 35 days and I have just been released from a personal bankruptcy a few months back. We were unconditional on our purchase contract by the time we met these guys so they had to do everything perfectly and super quick. They did it with ease and the customer service and follow up and friendly attitude was totally incredible. I couldn’t recommend them anymore if I tried.

Thea Hambuechen
12/4/2024

It has been a pleasure dealing with Luke and his team. During the process Alicia and Shayna have been very informative and kept in contact regularly to make sure we knew what was happening every step of the way! We will definitely be using Loanright in the future and highly recommend. Thank you again for helping us purchase our first home.

Tegan Shingles
12/4/2024

Sam & Shayna have been fantastic throughout my whole processing of purchasing my new home. No question went unanswered and both have always been a pleasure to talk to.

Kimberley Priest
12/4/2024

Have had the best experience working with these guys to purchase our investment property. Great application system, so quick and easy, and all questions answered promptly along the way. Highly recommend!

Alyshia Judd
12/2/2024

I had a fantastic experience with Alicia. Super friendly, warm and knowledgeable 10/10.

Felipe Prado
12/4/2024

We trust the Team at Loanright with our financial guidance. Throughout the whole process they make sure you are informed in time, accurately and with all the transparency you could ask for. It really sets you at ease that they have your best interest in mind. Their customer service is prestine and always available for you to ask any questions you may have. Thank you Loanright Team!

Ashley Pearce
12/3/2024

Luke and the team helped us with a refinance and we couldn’t be happier with the result. I would highly recommend the Loanright team to anyone.

Cassie McKee
12/4/2024

Luke and Shayna were awesome during the process of us buying our first home. So many things can be confusing during the process for first time and they were always happy to talk us through things no matter how small. Held our hand through the process and were able to get us into our first home. Very glad we found them. Highly recommend Loanright

Mellissa Lambert
17/1/2024

We’ve used the expertise of Luke, Shayna and the Loanright team on two separate occasions now, I must say their service is second to none and they get the job done In record time. No question was too silly, they always have time for us. Would use again and recommend in a heart beat to anyone else needing brokerage assistance. Many thanks.

FAQ’s About Invoice Factoring Finance

How does Invoice Finance work?

Once you’ve issued an invoice for completed services, the lender will pay a pre-negotiated percentage of the invoice amount into your trading account. Depending on your agreement with the lender and your debtors, collection of the invoice from the debtor may be the responsibility of the lender or your accounts receivable team.

What fees are associated with Invoice Finance?

The interest and fee structure of your debtor finance agreement comes down to a number of factors. Ie, whether or not you intend to draw your facility down on every invoice you issue or just draw down on spot invoices, whether or not you have a broad range of debtors or rely on one or two, whether or not your debtors are known to the lender and have a reputation for paying their invoices on time.

What is Invoice Finance?

An Invoice Finance facility is a line of credit with a pre-determined limit that can be drawn down as a percentage of the balance of debtors on your balance sheet. Essentially, the lender takes security over the invoices you generate for your debtors, so no property is required to support the loan. Invoice Finance can help provide a much needed working capital injection to businesses with outstanding debtor balances and longer payment terms.

How does Invoice Finance Work?

Once you’ve issued an invoice for completed services, the lender will pay a pre-negotiated % for the invoice amount into your trading account. Depending on your agreement with the lender and your debtors, collection of the invoice from the debtor may be the responsibility of the lender or your accounts receivable team.

What fees are associated with Invoice Financing?

The interest and fee structure of your debtor finance agreement comes down to a number of factors. Ie, whether you intend to draw your facility down on every invoice you issue or just draw down on spot invoices, whether or not you have a broad range of debtors or rely on one or two, whether your debtors are known to the lender and have a reputation for paying their invoices on time.

What is Invoice Finance?

In Australia, an Invoice Finance facility is a line of credit with a pre-determined limit that can be drawn down as a percentage of the balance of debtors on your balance sheet. Essentially, the lender takes security over the invoices you generate for your debtors, so no property is required to support the loan. Invoice Finance can help provide a much needed working capital injection to businesses with outstanding debtor balances and longer payment terms.

Can the lender access my accounting software automatically & increase the my borrowing capacity?

In some situations, yes, but usually, you need to agree to this within your the financing terms and conditions. If you don’t always need the business cash flow, it’s advisable to manually submit invoices, rather than using an integration.

What are the typical percentage rates for invoice receivables financing in Australia?

Invoice financing rates in Australia can vary, typically ranging from around 1% to 4% per month. The specific rate depends on your business creditworthiness, the industry you work in, and the terms of the financing agreement. Contact us for more details in relation to fees and charges.

Get In Touch With A Broker Near You

If you’d like more information about how to use finance to grow your business, then reach out and our commercial finance team will happily assist. Whether you’re in the market for vehicle finance, or specialist equipment, we have 100+ lending partners to choose from. You’ll be tapping into Australia’s largest network of banks and lenders.

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