Invoice Financing

Here is what our preferred Invoice Financing supplier “earlypay” has to say:

What is invoice financing?

Invoice financing (Debtor Financing) is a line of credit that provides funding based on outstanding invoices. Businesses can receive 80% (up to 90% in some cases) of the value of invoices upfront which increases cash flow that can be used for operational costs or to invest in growth opportunities,

As invoice finance is supported by outstanding invoices, the amount of available funding grows with your sales and thus can be used by early-stage growing and established businesses across a wide range of industries.

What are the Pros and Cons of invoice financing?

Pros

• Immediate cash flow
• Ongoing access to finance
• Backed by invoices, not real estate
• High approval rates
• No regular fixed loan repayments
• Option to outsource collections
• Ability to insurer your debtors

Cons

• Costs higher than real estate backed finance

How Invoice Finance works with Earlypay

• Invoice your clients as you normally would.
• Provide Earlypay with the details of the invoices you would like to fund. (If you use Xero or MYOB AccountRight Live, Earlypay can source your invoice details through our clever integration. If you don’t use these online accounting platforms, you can upload the invoice details to our platform.)
• Receive up to 80% of the value of your funded invoices upfront and sometimes 90%.
• Your customers pay invoices into a collections account set up for your business which repays the outstanding finance and the excess becomes available to you.

Will my customers know that I’m using Invoice Finance?

Earlypay offers both Confidential (Undisclosed) and Disclosed Invoice Financing services. Earlypay will work with you to tailor the best solution for your business.

How do I access my Invoice Finance facility?

You will be given access to an online portal where you can view your invoices and funding availability thus allowing you to request drawdowns and download reports.

What security do I need to provide for Invoice Financing?

One of the main benefits of Invoice Financing is that it doesn’t require real estate security. Funding is advanced against the value of the unpaid invoices and the primary security is the invoices themselves.

Why would I use Invoice Finance (Debtor Finance) instead of an Unsecured Business Loan?

Invoice Financing is generally more flexible than Unsecured Business Loans because you can access funding as and when you need the cash flow. Unsecured Business Loans provide a lump sum amount that is repaid with regular repayments over a fixed term whereas the repayment of Invoice Financing occurs when customers pay the invoices that were financed.

Invoice finance is often more cost effective than unsecured business loans as it uses the accounts receivable ledger of your business as security, making it less risky for the invoice financier.

Next Steps

If you are using Xero or MYOB Account Right you can simply connect up HERE – you can also check out this VIDEO to learn more about how it works.

You’ll also need to send me an example of the supporting documentation behind an invoice. Any invoice is fine. Also add example supporting documentation. This could be a contract, day sheet, time sheet, delivery docket, PO, Quote etc

Not using Xero or MYOB, that’s fine. Simply send me the following information

• P&L
• Balance Sheet
• Creditors Ledger
• Debtors Ledger
• 2 example invoices and supporting paper-trail

If you have any questions or you’d like to explore our product further please do not hesitate to reach out & “make contact“.