Worried about your cash flow while waiting for payment from your customers?
What if you could access the money you were owed before the invoice was paid? Good thing there is a type of financing where small businesses can access the value of the unpaid invoices issued to customers - invoice financing.
There are two types of invoice financing you have to consider:
✔️ Sell accounts receivable to a funder
✔️ Receive about 80% of the amount owed by customers
✔️ Less processing fees
✔️ Lose customer relationship
✔️ Manage invoice collections and customer relations
✔️ Take care of debt collection
✔️ Money is received from lending institution
✔️ Lending fee charged by lender
Minimum eligibility criteria
At Funding Link, we have simplified and streamlined the application process so that any business owner can be eligible for invoice financing:
✔️ Active Australian Business Number (ABN)
✔️ Invoices must be for completed work or services
✔️ Invoices must be from creditworthy customers
✔️ Certain level of annual turnover from $50,000 to $100,000
✔️ 12 months minimum trading time
✔️ Solid invoice tack record
✔️ No existing tax liabilities
✔️ Good credit score
Where to use it?
There are a few common reasons why businesses might apply for invoice financing:
1. Improve Cash Flow: Access to funds that would otherwise be tied up in outstanding invoices would help businesses manage their cash flow. This can be particularly useful for businesses that have long payment terms or that experience cash flow downturns.
2. Invest in Growth: Businesses can invest in growth opportunities, such as expanding their operations, hiring more staff, or purchasing new equipment.
3. Credit Risk Management: As providers typically perform credit checks on customers' creditworthiness and ability to pay their invoices on time, businesses would be able to avoid the financial impact of bad debts.
4. Debt Avoidance: Unlike traditional loans, invoice financing doesn't require businesses to take on debt. Instead, it provides access to funds that are already owed to the business, which can be repaid once the customer pays the invoice.
Securing funding early even before customer payment goes through can help businesses improve cash flow thereby covering essential business expenses and key investments. Here are some of the benefits of invoice financing:
1. Quick Set Up: Simple application process with a very experienced team assisting you so you can make quick yet sound business decisions.
2. Short Term: Businesses that rely on 30- to 90-day invoicing would benefit from a quick cash boost and payback.
3. Substantial Loan Amount: Secure up to $2 million in funding.
4. Great Value: Get up to 90% of the value of your outstanding invoices within 24 hours so you can invest it in your business's growth and expansion.
Invoice financing can be a useful funding solution that provides a quick, flexible and cost-effective way to access the funds that businesses need to succeed. Contact us today to discuss your options so we can assist you with your financial needs.
Ready to get started?
Take control of your funding and get started on the road to success. Contact us today and let's make it happen. Talk to Funding Link now.