Invoice Discounting and Invoice Factoring are available in days instead of weeks.
It is estimated that there are nearly 3.8 million late invoices in New Zealand due to small business owners not being paid yet. Focusing on the needs of our customers, Invoice Factors makes it easy to obtain invoice discounting and factoring with very little paperwork. We usually advance 80% of the approved invoice value, which is more than what you can get from a traditional overdraft facility. Part of our decision is based on collateral offered, tax returns, or financials. Primarily our decisions are made on the invoicing process and the account debtor’s (buyer’s) credit strength. We specialise in assessing and providing invoice discounting or factoring in under a week. Our approval process is very simple to allow us to expedite the initial funding usually within 3 to 5 business days after all requirements have been met and all forms are submitted. Our clients can benefit from our prompt service and start using their funds with just a few days of submitting their application.
Your Accounts Receivable: Hidden Collateral
Businesses selling on credit terms actually have a hidden asset that a majority of owners do not know they can use for collateral. We specialise in financing and collateralising accounts receivable. The company’s receivables are pledged as collateral which allows the business to draw out cash at any time against their eligible accounts receivables. Invoice discounting or factoring are not loans, which means it isn’t necessary to create debt for your business or have to make payments.
Which Industries Are Eligible For Invoice Discounting and Factoring?
Any business that sells services or goods on normal credit terms, without stage payments, can qualify for invoice discounting or factoring. Each industry is evaluated in a different way since industries all use different invoicing methods. As a general rule, your business needs to sell to good caliber customers (debtors). Your debtors need to be other businesses. Most industries including business service providers, temporary staff agencies, manufacturers, and wholesale are suitable for invoice discounting and factoring. Invoice discounting and factoring might not be suitable for businesses and retailers that rely on long-term service contracts or use stage payments as their payment norm. If the invoices were raised on credit terms in areas of the service or goods delivery and agreed by the debtors as payable, then they will be eligible for invoice discounting or debtor factoring.