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Mining is one of the oldest and most established industries in Australia, but its success doesn't mean that it doesn't face cash-flow problems. As with any industry that relies on investment to meet demand but has long waiting periods to receive payment, any mining business can run into financial difficulty.
Invoice finance helps to unlock money that your business has already earned when you need it most, rather than when the invoice is due. With invoice finance, there's no need to wait for the capital that you need to meet your overhead or grow your business.
Invoice financing is a method of funding for mining businesses that allows them to borrow money against their unpaid invoices. Mining companies usually have to wait 30-90 days for most invoice payments, and this can be disruptive when paying overhead such as quarterly costs. Invoice finance is a cash-flow tool that gives quick access to much needed capital within the mining industry.
Demand varies substantially and large orders require a large investment within the mining business. If you're waiting on client payments before you can fulfil the demands of the next order, you could be missing opportunities. Instead of letting cash flow be interrupted by slow-paying clients, you can fund up to 90% of your unpaid invoices by using a third-party finance provider.
There are two distinct types of invoice finance for mining services:
Mining industries require a lot of capital for trade, and due to recent climate concerns, acquiring a bank loan might prove more difficult now than it may have been in recent years. Luckily, many Australian invoice finance providers specialise in mining-service financing, so there is no shortage of finance opportunities. Going through a specialist company may also mean that you can find something that you can tailor specifically to your business's needs.
Even if you are not currently facing issues with cash flow, because of the fluctuations in price and currency within the mining trade, there is always a potential for financial risk involved in the industry. Invoice finance could be a viable safety net if you run into difficulties. Usually with invoice finance, businesses only pay for what they borrow, so if you don't require the service, you don't have to pay for it.
The cost of invoice financing for mining services varies depending on the annual turnover of your business, the size of your company and factors like whether you have any large outstanding company debts.
As they are short-term loans, invoice financing companies usually do not charge a p.a. interest rate, but instead charge a discount fee (a percentage of the invoice that is deducted as a charge based on the invoice amount) on funded invoices.
Different lenders will have different methods of charging for their services, so it is always worth checking with the provider what their charging system is prior to submitting an application.
To apply for mining invoice finance, click "Go to Site" and submit an enquiry form with a chosen provider. Representatives usually get back in touch quickly and applications can be approved in as little as 24 hours (sometimes less).
To apply for invoice finance for mining services, you will likely need the following:
It is always a good idea to compare invoice finance providers carefully and find the right fit for your business prior to making a commitment.
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