Factoring/Accounts Receivable Invoice Finance

If you are in business and providing goods or services to other businesses on credit, we can give you cash now by factoring your invoices.

 

Factoring & Invoice Financing

What is Factoring?

Factoring is an effective way to bankroll your business. Our facility allows you to sell your invoices to us in exchange for an immediate payment, rather than wait the 30 to 60 days for your debtors will take to pay.

Factoring provides you with the cash to run your business by releasing the funds tied up in your debtor’s balances.

Factoring is a service offered by Asset Finance.


Factoring is simple; here’s how it works

1.    You deliver the goods or services to your clients just as you do now
2.    You send the invoice to Asset Finance
3     We give you an immediate payment of up to 90% (typically 80%) of the face value of the invoice (less our fees).
4.    When your customer makes his payment, he pays Asset Finance
5.    We release the balance owing to you.

Factoring can eliminate the need for borrowing to fund your growing business. If you sell more there are more funds available through the same process. The facility simply grows (and reduces)with your sales: No need to extensions to overdraft facilities or term loans.


Your business can benefit from Factoring

Any business that provides goods or services on credit terms to other businesses can benefit from factoring.  You could benefit from talking to us if:

  • You feel your businesses could increase your sales and grow, but you are being held back because of lack of money; or
  • You have expenses you must pay weekly or fortnightly (e.g. wages, fuel, GST, etc) but must wait 30 to 60 days to receive payment for the goods or services you have already provided
  • You need an finance facility but don’t wish to pledge your assets to get one
  • You are unsure what level of financing you are likely to need. A term loan or overdraft may not be appropriate

Talk to us today about how well factoring could work for you!