Australian Invoice Finance
Get up to 90% of your unpaid invoices financed. Costs include drawdown fee, interest charges and legal fees.
Australian Invoice Finance offers a range of invoice financing and invoice discounting products, including easy invoice finance, invoice factoring, partnership factoring and invoice discounting. With invoice financing, you don’t have to borrow against your property and take out a loan at your personal risk. Invoice finance gives you access to the money that your business is already owed, but before it's been paid. Your invoices act as your loan security. You can access up to 90% of your unpaid invoices, including in the form of a line of credit. The type of product you choose will depend on the needs of your business. For SMEs with a turnover of under $2 million, easy invoice financing will give you access to up to $250,000. Costs will vary depending on the circumstances of your business and the written agreement, but they will include a drawdown fee, interest rate and legal fees.
Main points to consider about financing with Australian Invoice Finance
Australian Invoice Financing is a non-bank lender that is also not owned by banks.
There are several different types of invoice financing that Australian Invoice Finance offers: Easy Invoice Finance, Invoice Factoring, Partnership Factoring and Invoice Discounting. While all give you access to your unpaid invoices ahead of payment, there are subtle differences between the four and this should be taken into consideration when deciding what is best for your unique business set-up.
In order to qualify for finance, you will need to securely disclose your business data to Australian Invoice Finance, so it can consider your eligibility. If accepted you will receive a written offer with a comprehensive breakdown of the product that could be best for your business and the associated costs.
Products that are on offer
Australian Invoice Finance offers a number of invoice products. Though similar in principle, they do have some differences:
- Easy Invoice Finance. If you have outstanding invoices and are an Australian business, you could qualify for this service. You can fund up to 90% of one or more invoices prior to payment using Easy Invoice Finance, and there are no lock-in contracts. This form of finance is better for small businesses and startups with a turnover of under $2 million and facility limits under $250,000.
- Invoice Factoring. This service is effectively a line of credit that is secured against your outstanding invoices. You can access cash from 90% of approved invoices. Australian Invoice Finance will also follow up your payments for you, and take action against clients when necessary. This could potentially take away the stress of chasing payments.
- Partnership Factoring. This type of invoice finance works the same as Invoice Factoring, but you retain your autonomy when it comes to following up on payment. Some businesses may prefer this to maintain client relationships.
- Invoice discounting. This form of invoice financing gives you access to up to 85% of your unpaid invoices from Australian Invoice Finance. Businesses with a strong back office may prefer this method, as it allows the borrowing company to retain greater control over its invoice and payment procurement procedure.
Features that are on offer
Australian Invoice Finance offers a number of features that may benefit your business:
- Quick approval. You could be approved for finance in just 24 hours.
- Up to 90% of invoice funding available. Australian Invoice Finance will fund up to 90% of approved invoices. When your client pays, it will transfer the remaining funds to your nominated business account, minus its fee.
- Small business lending. Borrowing from Australian Invoice Finance is available for small and medium enterprises, as well as startups.
- B2B applicable. Australian Invoice Finance funds B2B companies.
- Expert in its field. Australian Invoice Finance is an expert in the field of invoice finance and business, it claims to not necessarily focus on just the lowest rate, but on what actually works for your business.
- Not a bank. Because it's not a bank and not owned by banks, Australian Invoice Finance can potentially offer more competitive rates and a more personal business to business relationship.
- Only pay for what you borrow. If opting for a business line of credit, you only pay for what you borrow with Australian Invoice Finance.
- No security. Though it depends on your business, it is very rare for property security to be required from Australian Invoice Finance.
Fees and charges
- Drawdown fee. When making a withdrawal from your business line of credit with Australian Invoice Finance, you will be required to pay a drawdown fee. This fee will depend on a number of factors and on the terms of your written agreement with Australian Invoice Finance.
- Interest rate. You will also be charged an interest rate on your outstanding balance with Australian Invoice Finance. Again, this rate will depend on your business circumstances and your written agreement.
- Legal fees. You may also be required to pay any legal fees associated with the set-up of your account with Australian Invoice Finance.
How to apply
To apply to Australian Invoice Finance, you must:
- Be over 18
- Have an Australian ABN or ACN
- Provide your business details and data
If you think that Australian Invoice Finance could work for your business, you can click the "Go to Site" buttons to apply. For further information, call or email Australian Invoice Finance directly with any questions that you may have.