What is Invoice Finance?

Invoice Finance is a cash flow management tool used by businesses to improve cash flow and accelerate growth by shortening the normal receivables cycle. By factoring outstanding invoices to invoice financing companies known as factors, businesses can eliminate the 30-90 day wait for payment and instead, get paid immediately. Instead of worrying about meeting urgent items like payroll, they can pay bills on time, and take on more business without depleting their cash. Invoice Finance is primarily a source of funding for new businesses, rapidly growing businesses, or established businesses that find it difficult, time consuming, or both, to secure additional lines of credit from traditional banks and provides a flexible, cost-effective alternative to conventional lending.

Will it suit my business?

Small to medium businesses with a high level of customers on accounts and a monthly turnover of $100,000 to $3,000,000 will benefit from our service. Factoring is used by businesses of all sizes to accelerate cash flow and growth. In fact, factoring is an ideal source of working capital for small businesses that aren’t yet attractive to banks and other lenders. Many larger and well established companies with greater annual sales also suit factoring to navigate through the issues of cash flow and offering credit terms.

How much do I get?

Up to 90% of the invoice face value less 1.8% (fee for the first 30 days). The remaining 10% of the invoice face value less any accrued fees, is transferred to you when your customer pays us.

How much do you charge?

BCashflow Positive is transparent about fees so there are no surprises. Our invoice finance service costs 1.8% for the first 30 days and 0.06% per day there after for up to 90 days. Give our calculator a go to see how much funding you can get or contact Australia’s leading invoice finance company today to find out more.

How soon can I get funding?

Invoices are processed on the same day and funds are credited to your account in as quick as 4 hours.

How fast can I get an approval?

A response is provided within 24 to 48 hours of receiving your application.

Will I be dealing with the same person from start to finish?

Yes. As a leading invoice finance company with over 30 year’s experience, we pride ourselves in providing tailored and personal financial solutions through one on one relationships.

Is it too expensive?

The assertion that factoring is too expensive is usually based on a lack of understanding of what factoring rates represent. Factors do not lend money at a rate of interest. They factor invoices at a discount, and they quote rates as a percentage discount from the face value of the invoices. When business owners and financial professionals treat factoring discount rates as interest rates on a loan, they come to the incorrect conclusion that factoring is too expensive. For example, if a business sells $100,000 worth of invoices to a factor, and the factor’s fee is $1,800 on invoices that are paid in 30 days, the tendency is to take the 1.8% fee, multiply it by 12 months. This is incorrect! The factor only collects 1.8% on that sales transaction alone, no different than if you were to sell your own product or service to a client at a 2.50% discount.

Is it worth it?

If instead of turning away business due to a lack of working capital, your business can use the ready cash provided by factoring to fill more and larger orders, it makes perfect sense to pay the factoring fee.
  • Factoring is not subject to the same restrictions and conditions that banks require
  • Factoring can get you the cash within hour’s vs weeks/months
  • Factoring will increase your cash flow without creating debt
Also, included are additional services not provided by banks. Factors help you minimise bad debt by running free credit checks on all your new and existing customers – so you can set appropriate credit limits and avoid extending terms to risky customers.

Why is proof of delivery/service so important?

What happens when your client cannot or will not make payment on your invoice? Having a bonafide purchase order, delivery docket, timesheet, job sign-off etc. is often the difference between getting paid promptly and having a long (costly) argument with your debtor. It is important to remember that when a payment dispute arises you will not necessarily be dealing with the friendly customer you have known for many years. You may even find yourself dealing with a Liquidator or Receiver who has been appointed to handle your customer’s affairs and this is not the time you want to discover that your paper trail is less than complete. Wherever possible you should ensure you receive:
  • A written Purchase Order provided by the customer
  • A signature is obtained from the recipient upon product delivery to acknowledge that the correct order has been received
  • Similarly, if a service is being performed have an authorised person sign off that the job has been satisfactorily completed
  • Most importantly, ensure that you have correctly identified yourself and your customer (name and ABN) on all paper trail documents. An incorrect customer name is often the easiest way for a debtor to claim that the invoice is not their responsibility

How will my customers react?

A factoring company’s goal is to help you do more business by improving your cash flow. It’s in our interest to help you succeed. We employ professionals that are very proficient at establishing and maintaining customer goodwill and confidence. If there’s a problem with one of your factored invoices, we will contact you to discuss the issue and if required provide courteous and professional reminders when invoices are overdue.

Will my customers think I am financially vulnerable?

Some Australian industry studies suggest Australia is the slowest paying country with the average terms nearing 65 days. Businesses today use invoice factoring as a cash flow management tool and to fund expansion and to take on new business. It has become a common financial tool used by companies of all sizes to successfully manage cash flow and finance growth without debt. Your customers will view your ability to secure a factoring facility as a positive event, and not as a problem with cash flow. It lets your customers know that you’re better equipped financially to grow and meet their demands. And when breaking it down wouldn’t your customers prefer to continue working with you knowing you are a well-funded company, rather than starting the process of finding a new relationship with another supplier. The only thing that changes for your customers as a result of your new facility is the remittance of payments to the factors account and the verification of invoices from time to time.

Client Success Story

❝As a director of an expanding consultancy & recruitment company, with a growing contractor base. I can assure folks out there, that without the team at BCashflow Positive, we’d struggle with monthly invoices and payroll. We don’t factor all our invoices, just when we need a monthly cash flow boost.❞

Yann Guillaume Director BT People

Adrian Everett Chief Executive BT People

Who Does Debtor Finance Suit

Growing business requiring additional working capital

Companies looking to cover the gap of slow payments and improve cashflow

Businesses invoicing other businesses for the sale of goods or services

Business with a high level of customers on accounts and a monthly turnover ranging from $100,000 to $3,000,000

What Our Clients Say

❝Getting instant funds from our invoices is crucial to our business success. It means we can pay wages on time and grow our business. The staff are also great to deal with.❞Owner, Recruitment, NSW

❝We engaged BCashflow Positive to get on top of our ATO obligations. Constant cash flow allows us to meet our operating expenses and grow our business.❞Accountant, Earthmoving, QLD

❝Our facility provides us with the buying power we need to stay competitive, and maintain growth. From day one, BCashflow Positive have been very friendly and professional to deal with.❞Managing Director, Wholesale Company, VIC

❝We used BCashflow Positive when our bankers didn’t want to know us, as we operate in an industry that was going to be affected by the introduction of the carbon tax. Traditional lenders were unable to deal with the uncertainty and risks.
BCashflow Positive understood the risk and assisted us with our cash flow, which was great❞Financial Controller, Solar Manufacturing Company, WA

Talk To The Team Now
Our local Cash Flow Managers are ready to help your business.

Call Us: 1300 937 292
Monday to Friday 8:30am to 5:00pm (AEST)