Funding Pro Invoice Finance

Invoice finance, also known as debtor finance, allows you to unlock the capital that's tied up in your unpaid invoices by borrowing money that is secured against the value of your invoices. This means that you have consistent cash flow when you need it without having to secure loans against your assets or fill in any heavy-duty paperwork. Funding Pro offers several invoice financing products including invoice factoring, invoice discounting, a virtual line of credit and a trade finance service. You can get up to 50 to 90% of your invoices funded, with an upfront value of $2,000,000. Terms range from 1 to 3 months, and interest rates start from 0.5% per month. Costs will depend on interest rate charges and the type of invoice financing product you choose.

Main points to consider with Funding Pro's Invoice Finance

Funding Pro invoice financing products are suitable for B2B businesses that provide goods or services to their customers on terms of credit (i.e. issue invoices to their clients). Funding Pro offers borrowers same-day approval and 50-90% of the value of their outstanding invoices upfront up to the value of $2,000,000 with their invoice finance solutions.

Unlike other invoice financing companies, when determining your eligibility for finance, Funding Pro is not wholly concerned with how long your business has been trading, your annual turnover or your profitability. However, it will look at your credit rating and at the financial viability and creditworthiness of your customers in order to determine whether your business is eligible for finance.

Features of Funding Pro's invoice financing products

Funding Pro offers a range of invoice financing products: Invoice Factoring, Invoice Discounting, a Virtual Line of Credit and a Trade Finance service. While these products are either types of invoice finance or work with invoice finance, there are important differences in what they can offer your business:

1. Invoice Factoring

• Get 50-90% of the invoice value upfront. Usually, Funding Pro funds 80% of invoice values, but depending on your preferences and circumstances, this could go as low as 50% or as high as 90%.
• Same-day approvals. Get approved for finance in less than 24 hours.
• No security. There is no need to use assets as security for invoice factoring because your loans will be secured against the value of your invoices.
• Quick funding. Funds could be in your account in as little as 24 hours.
• 30-90 day loan term. If you invoice your clients with 30-90 day payment terms, invoice factoring could help.
• Outsource your accounts receivable. Funding Pro's invoice factoring allows you to turn over debt collection responsibilities to them.
• Full customer disclosure. Because your debt collection responsibilities are outsourced to the lender, Funding Pro will require you to disclose to your clients that you are using an invoice finance service.
• All of your invoices financed. Funding Pro's factoring service requires your business to finance all of its accounts receivable.
• 12 months+ contracted. This is a contracted service that requires you to finance all of your invoices for a minimum of one year.
• Interest-based cost. You will be charged interest in accordance with how long it takes your customers to pay their debts.
• 0.5%+ interest rate. Rates start as low as 0.5% of the value of your invoice in interest per month.
• No minimum business establishment period criteria. Your company's eligibility is not determined on how long you have been trading for.

Invoice factoring can be good for start-ups with little trading history or for those that do not have a strong accounts receivable department. Invoice factoring alleviates the pressure of debt collection and can save your team valuable time and money.

It is also good for consistent cash flow because all of your accounts receivable are financed. However, this can prove more costly than other types of invoice finance as your business will have to pay interest across your full invoice ledger.

2. Invoice discounting

• Get 50-90% of the invoice value upfront. Funding Pro usually funds 80% of your invoice values, but depending on your preferences and circumstances, this could go as low as 50% or as high as 90%.
• Same-day approvals. Get approved for finance in less than 24 hours.
• Quick funding. Funds could be in your account in as little as 24 hours.
• No security. Loans are secured against the value of your invoices, so there is no need to use assets as security for invoice discounting.
• 30-90 day loan term. If you invoice your clients with 30-90 day payment terms, invoice discounting might suit your business.
• No lock-in contracts. With invoice discounting, there is usually no need for lock-in contracts.
• Retain debt collection responsibilities. Your business is responsible for chasing and collecting your client payments with invoice discounting.
• No disclosure required. You do not have to tell your customers that you are using an invoice financing service with an invoice discounting arrangement.
• Fund what you need. With invoice discounting, you can fund as many or as few invoices as you prefer/require.
• Only charged for what you borrow. Only pay for the invoices you want financed, not on your entire accounts receivable.
• 0.5%+ interest rate. Rates start as low as 0.5% of the value of your invoice in interest per month.

Invoice discounting can work out cheaper than invoice factoring as you only pay for what you borrow, so there is no need to pay interest across the whole of your client invoice ledger. Rates are also sometimes lower with invoice discounting than other types of invoice finance.

However, as you are charged interest based on how long it takes your customers to pay, invoice discounting is usually better suited to businesses with a strong accounts receivable department as the later your customers pay, the more it will cost your business. Invoice discounting also offers no insurance should your customers not pay at all.

3. Virtual Line of Credit

• Line of credit. Funding Pro also offers a line of credit that you can draw down from whenever your business needs a cash flow boost.
• No security required. Funding Pro's line of credit is backed against the outstanding value of your invoices (as opposed to a single invoice at a time).
• Quick funding. Funds could be in your account in as little as 24 hours.
• Get 50-90% of outstanding invoice value. Your line of credit will be between 50% and 90% of the outstanding value of your invoice ledger. While usually determined at 80%, this will depend on your circumstances and preferences.
• Only pay for what you borrow. Although all of your invoices are processed with this option, you only pay for what you draw down.
• 0.5%+ interest rate. Rates start as low as 0.5% of the value of your outstanding draw down balance in interest per month.

A virtual line of credit could be beneficial for businesses that wish to have the convenience of stabilising their cash flow with finance without having to submit invoices for approval each time, but also without financing their entire invoice ledger. Funding Pro determines your company's eligibility for a virtual line of credit by assessing your accounting software to see how regularly your clients pay outstanding invoices.

4. Trade Finance

• Pay suppliers upfront. Trade finance is a tool for paying your suppliers 100% of their invoices as soon as they are issued.
• Discounts available. Some suppliers offer discounts for early payments. Take advantage of these discounts and offset some or all of your loan costs.
• Same-day funding. Get funded and pay your suppliers in just one day.
• 60- to 120-day repayment terms. Pay your suppliers straight away while extending your terms to 60 and up to 120 days.
• Pay ATO. You can also pay ATO using this service. It might be more flexible and cheaper than payment plans that they offer directly.
• 2% establishment fee. Establishment fees start at 2% of the cost of the supplier's invoice for this service.
• 0.75%+ interest rate. Monthly rates start at 0.75% interest.

Trade finance is a way of paying your suppliers straight away through finance and repaying the cost over a longer period of time. It typically works in conjunction with invoice finance as the cost of the supplier payment is usually secured against the value of your outstanding invoices. However, this might not necessarily be the case for everyone.

Funding Pro's trade finance can benefit businesses that have trouble paying suppliers on time or don't wish to miss out on future business opportunities. However, deferring supplier payments can cause problems further down the line.

How much does Funding Pro invoice finance cost?

The cost of Funding Pro's invoice finance solutions will vary depending on which product you decide is best for your business. It will also depend on factors such as your credit rating, the credit rating of your customers, how frequently your customers pay their debts on time and in some cases, the profitability of your business.

How to apply

To apply for Funding Pro invoice finance, simply click "Go to Site" and submit an inquiry online or call them directly. Inquiries work as a pre-qualification tool, which is free to use and won't impact your credit rating.

Some questions you will be required to answer on your pre-qualification application include the following:

• The type of finance that you require
• Why you need the funds
• Your industry type
• Whether you are a homeowner
• Your credit rating (an estimate)

You will also need to provide the following information:

• Your ABN/ACN
• Your business name
• Your average annual turnover
• Your contact details

Before submitting an application, consider what type of finance would suit your business best and compare your options carefully.

Funding Pro is an online lending platform that offers a broad product portfolio, including home loans and a large range of business loans as well as an invoice finance service.

Written by

Bria Horne

Writer

Bria Horne was a writer for Finder, with a specialist knowledge of personal loans, car loans and business loans. Originally from the UK, Bria has been a professional personal finance writer in Australia for over 2 years. She has an M.A and B.A in Philosophy and Literature from the University of Sussex, and previously worked on the UK’s leading hospitality publication. See full bio