Being in control of your business’ cashflow can be challenging. For instance, not having enough money in the business account each day to pay wages, suppliers, rent and any other financial commitments can be a stressful scenario and yet it is one which most business owners face at some point in time.
It becomes increasingly tricky if your revenue is seasonal or if the cash is tied up in unpaid customer invoices. Pacific Finance Australia can help you secure the necessary funds so that your business’ cashflow remains intact.
How does Invoice Financing work?
Pacific Finance Australia has access to panel of financiers that specialize in Invoice Financing. Invoice Financing also known as Debtor Finance, acts like a revolving line of credit. It ensures that every time you raise an invoice, you receive 80% of that invoice the very next day, without having to wait for the client to pay. When your customer pays the invoice, the funds will go to the financier and you will receive the remaining 20%, less interest and fees.
The benefits of Invoice Financing:
- Be in control of your cashflow
The lender pays you 80% of the invoice within 24-48 hours of it being raised. Therefore, day-to-day financial commitments become more manageable.
- No additional security required
Your invoice finance loan reduces as your clients pay the invoices. The unpaid invoices are provided as security; as a result no property security is required.
- Easy access to additional funds
The finance limit will grow with your business. You will have the ability to take out additional finance, as soon as another invoice is raised. Unlike a bank overdraft which is limited by the amount of equity in your property, invoice finance will grow with your business with no cap.
- Flexibility with your finances
You can choose whether you’d like to finance a single invoice or multiple. You even have the option to finance multiple invoices at once. There are a number of ways these can be arranged. You are best advised to speak to our consultants as to what variation suits your business best.
- A cost and time effective solution
You will receive the remaining 20% of the funds when your client pays the invoice (minus the associated loan fees). The loan terms are flexible and are dependent on your business’ payback period – 30, 60 or 90 days.
What you need to secure Invoice Finance:
- ATO statements
- Profit and loss balance sheet
- Aged receivables and payables report
- Full financial statements
- List of existing business loans
- Personal assets and liabilities of the Directors
Grow the business you want with Invoice Finance
Our Finance Specialists are experienced in helping businesses grow through both short-term and long-term business finance solutions, which can be tailored specifically to you. Let us help you give your business the cashflow injection it needs in the short-term, to assist in its growth over time.
Contact your Pacific Finance Broker today on 08 9321 2120 or email us at [email protected] for more cashflow solutions.