Invoice Finance, Explained

Invoice Finance is a Short Term Funding Solution which allows you to use your unpaid invoices as security to borrow money for your business. Provided your business is invoicing other businesses or government organisations, and these invoices are outstanding, you can qualify for this type of finance.

Invoice Finance can be useful to help with cash-flow problems when your clients are slow to pay their invoices. It is also a relatively simple way to obtain finance. Invoice finance companies will want to have confidence that the invoices are sound, and while they may look at your credit report, they are not as concerned with how long your business has been established, your total revenue or your profitability.

There are two main types of Invoice Finance: Factoring and Invoice Discounting. The main difference between these two is that with factoring you have to finance all your invoices, and with invoice discounting Solution you get to choose which invoice will be financed. The maximum amount you can borrow will depend on the total amount of outstanding invoices, and the financial strength and creditworthiness of the business that owes you money.

• Invoice Value = $5,000.00 to $10,000.00 = 60% LVR payment of secure invoice Debt arrange fixed for 30 Days (Plus applicable fees and charges)
• Invoice Value = $10,000.00 to $25,000.00 = 65% LVR payment of secure invoice Debt arrange fixed for 30 Days (Plus applicable fees and charges)
• Invoice Value = $25,000.00 + = 70% LVR payment of secure invoice Debt arrange fixed for 30 Days (Plus applicable fees and charges)