Invoice discounting is a type of debtor finance that helps mid-sized companies improve their cash flow. Companies often encounter cash flow problems because commercial clients pay invoices in 30 to 90 days. Discounting invoices solves this problem effectively and quickly. Our solution improves your cash flow and helps position your company for growth. We are a leading provider of invoice discounting in Australia and can provide you with competitive financing terms.
Solve cash flow problems effectively
Invoice discounting improves your cash flow by financing your accounts receivable ledger. Instead of waiting weeks to get paid by clients, your company gets immediate funds from the finance company. This payment improves your cash position and provides funds to pay critical company expenses. When used correctly, our solution can help you grow your company. It allows you to offer payment terms to clients and provides immediate funds to help cover the associated company expenses.
How does invoice discounting work?
Discounting provides a revolving line of financing that is secured by your accounts receivable. The finance company advances a portion of your unpaid invoices, usually 80% – 85%. The advance provides immediate liquidity for your company. The line is designed to provide you with ongoing financing. Your company submits its receivables regularly, and the finance company provides the advance. The outstanding line amount is adjusted regularly as customers pay old invoices and your company raises new invoices. To learn more, read “What is Invoice Discounting?”
We provide high advances
We can offer high advances to qualifying companies. On average, we can finance 80% – 85% of your accounts receivables. However, we can offer higher advances to companies in certain industries. You can learn more by speaking to one of our representatives.
Our solution offers a cost-effective way to finance operations and improve cash flow. Pricing varies based on the size of your company, the credit quality of your commercial invoices, and your industry risk profile. To get an instant online cost estimate, fill out the enquiry form.
Easier to get than bank financing
Invoice discounting lines are easier to qualify for than most banking products, such as overdraft facilities or lines of credit. Easier qualification requirements make invoice discounting lines an ideal option for companies that are not able to get bank financing.
Invoice discounting has a number of advantages that makes it a great option for companies that need to improve their cash flow. Benefits include:
- It provides immediate cash flow
- The line is flexible and can grow as needed
- It allows your company to sell on 30-day terms without cash flow problems
- It’s easier to obtain than bank financing
- There isn’t a need to put personal real estate as collateral
To learn more, read “The Benefits of Debtor Financing”.
Disclosed and confidential options
We can offer discounting as a disclosed facility or as a confidential facility. The main difference between these options concerns how customer notifications and invoice verifications are handled. In a confidential facility, your customer generally does not know that you are financing your receivables. Confidential facilities are offered to companies that are well established and have robust financial and collections controls. Smaller companies often start with disclosed facilities and move to confidential facilities as the company grows, reduces risks and improves financial controls.
Is invoice discounting right for your company?
Our solutions may be right for your business if the following apply to you:
- You work with commercial and industrial clients that have good commercial credit
- Your clients pay invoices in 30 to 60 days
- Offering payment terms to customers is creating financial problems
If you meet the above criteria, discounting invoices should be able to help you. Our programmes are designed to help companies with cash flow problems due to slow-paying customers.
Invoice discounting is different from factoring
Invoice discounting is often confused with factoring financing. Although the products have similar benefits and features, invoice discounting is different. The main differences include:
- Invoice discounting finances accounts receivable as a batch without ledgering each individual invoice
- The solution has lower pricing than factoring because clients have a lower financial risk profile
- The solution is offered to mid-sized companies that have internal financial controls in place
- The client retains collections duties and responsibilities
- The solution may be offered as a confidential financing option for select clients
To learn more, read “How is Invoice Discounting Different From Factoring?”
Get an invoice discounting quote
We are a leading invoice discounting company and can provide you with a competitive quote. For an instant online quote, fill out the enquiry form.
We provide debtor financing and invoice factoring services to companies throughout Australia, including: