Services: Invoice Finance for Mining Services Companies

Invoice finance is a type of debtor financing that improves the cash flow of mining service companies. It finances your accounts receivable ledger, bridging the gap between invoicing your client and receiving payment.

Commercial Capital is a leading provider of invoice finance to mining services companies. Our programmes have simple qualification requirements and can be deployed quickly.

We have over a decade of experience financing small and midsize businesses in Australia. For more information, submit an enquiry form.

Key Details

Are you already familiar with invoice financing and just want to know the key details? Here is what we offer:

1. Competitive terms
2. High advances – up to 85%
3. Simple qualification requirements
4. Fast turnaround
5. Over a decade of industry experience

Do you face this challenge?

Companies in the mining industry typically pay their invoices in 30 to 60 days. Trading on 30-day terms is common in business transactions and is expected by your customers. However, payment terms can also create problems for some companies.

Mining services companies are typically small to midsize enterprises (SMEs) that operate with tight cash reserves. Waiting 30 days to get paid can be a challenge, especially if they are growing. The company has ongoing expenses, such as employee wages, equipment rentals, and supplier payments.

The solution

Invoice finance solves this problem by funding your accounts receivable ledger. It provides the working capital you need to pay expenses and grow the business. When used correctly, invoice financing provides a stable platform for growth.

How does invoice financing work?

Your invoices are financed in two instalments. The first instalment is deposited into your account soon after it’s processed by the financing company. It covers 70% to 85% of the invoice’s value.

The financing company deposits the remaining 15% to 30%, less its fees, once your customer pays the invoice on their usual trading terms. This deposit concludes the transaction for the invoice.

Clear benefits

Invoice finance programmes offer several benefits for small and growing companies in the mining services sector. These include:

1. Improves cash flow quickly
2. Provides funds for essential expenses
3. Enables you to offer 30-day trading terms
4. Available to small businesses
5. Quick turnaround
6. Simple qualification requirements
7. Fewer covenants than loans

Simple qualification

Qualifying for invoice finance is simpler than obtaining other solutions of comparable size. The most important requirements include:

1. ABN or ACN
2. Creditworthy customers
3. Offer 30- to 60-day trading terms
4. Invoice after work is completed
5. Invoices not pledged as security to other lenders

Is invoice financing right for you?

This solution is well-suited for mining services companies. Their clients typically have great business credit, which is essential for this type of financing.

This solution may be right for your company if it:

1. Works with high-quality clients
2. Has good profit margins
3. Has cash flow issue due to slow payments

However, every company’s situation is unique. The management and finance team should carefully evaluate if invoice finance is right for their business.

Learning centre

We want to help you make an informed decision about using invoice finance for your mining services company. Our learning centre has detailed information about our products and how they work. Popular articles include:

1. What is Invoice Finance? How Does it Work?
2. Advantages and Disadvantages of Invoice Finance
3. How Much Does Invoice Financing Cost?
4. Why Do Companies Use Invoice Finance?

Availability

We provide debtor financing and invoice finance services to companies in all states. We can work in:

• Sydney (NWS)
• Melbourne (VIC)
• Brisbane (QLD)
• Perth (WA)
• Adelaide (SA)