Services: Invoice Finance for Labour Hire Companies

Invoice finance, also known as invoice factoring, is a type of debtor financing that improves the cash flow of labour hire companies. It finances your accounts receivable ledger, bridging the gap between invoicing your client and receiving payment.

Commercial Capital LLC (Australia) has over a decade of experience financing small companies in Australia. We are a leading provider of invoice finance to labour hire companies. Our programmes have simple qualification requirements and can be deployed quickly.

Submit an enquiry form for more information.

Do you face this challenge?

Most labour hire companies give their clients 30 to 60 days to pay their invoices. Trading on 30-day terms is typical in business transactions and is expected by your customers. However, these terms can create problems for companies with small cash reserves.

Trading on terms creates a 30-day gap, or longer, between sending the invoice and getting paid. Any expenses that must be paid during this period must come from your cash reserves. These include employee wages, entitlements, taxes, superannuation, and other expenses. This situation becomes a problem if these expenses exceed your reserves.

Invoice finance solves this problem by financing your accounts receivable. This solution provides the funds 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 debtor financing company. This instalment covers 80% to 85% of the invoice’s value.

The financing company deposits the remaining 15% to 20% once your customer pays the invoice on their usual trading terms. This deposit concludes the transaction for the invoice. Financing fees are deducted directly from the instalments. Fees vary based on the size and risk of the transaction.

Competitive advances

A high initial instalment is essential for labour hire companies. This deposit provides the initial liquidity injection that improves cash flow and helps cover expenses.

Commercial Capital LLC offers high advances. They range from 80% to 85% based on transaction details and risk.

Clear benefits

An invoice finance programme offers several benefits for small and growing companies. These include:

1. Improves cash flow quickly
2. Provides funds for essential expenses
3. Enables you to offer 30-day trading terms
4. Is available to small businesses
5. Can be deployed quickly
6. Has simple qualification requirements
7. Has 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. Unencumbered invoices

Is invoice financing right for you?

An invoice finance programme will likely help you if your company:

1. Works with quality commercial 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 labour hire company. Our learning centre has detailed information about our products and how they work. Popular articles include:

1. What is Payroll Finance? How Does it Work?
2. Advantages and Disadvantages of Payroll Finance
3. Payroll Financing for Labour Hire Agencies
4. Understanding Invoice Financing Costs

Availability

We provide debtor financing and invoice finance services to companies throughout Australia, including:

1. Sydney
2. Melbourne
3. Brisbane
4. Perth
5. Adelaide