unpaid invoices – B Through Z http://bthroughz.com/ Mon, 18 Apr 2022 06:49:46 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bthroughz.com/wp-content/uploads/2021/08/icon-23-150x150.png unpaid invoices – B Through Z http://bthroughz.com/ 32 32 The Definitive Guide to Invoice Financing https://bthroughz.com/the-definitive-guide-to-invoice-financing/ Mon, 17 Jan 2022 14:20:54 +0000 https://bthroughz.com/the-definitive-guide-to-invoice-financing/ Businesses use invoice financing as a way to raise capital without giving up equity or other collateral, and it’s also the only form of commercial lending available in many markets around the world. This guide will help you understand what business invoice financing is, how it works, and whether or not this business financing option […]]]>

Businesses use invoice financing as a way to raise capital without giving up equity or other collateral, and it’s also the only form of commercial lending available in many markets around the world. This guide will help you understand what business invoice financing is, how it works, and whether or not this business financing option might work for your business.

What is invoice financing and how does it work?

Invoice financing (also known as accounts receivable financing) is a type of financing that allows businesses to borrow money against money owed to them by customers. Banks and other lenders are often reluctant to lend to small businesses because the business’ credit history is not as strong as that of a larger business. Invoice financing allows businesses to get the cash they need by borrowing against invoices they have already sent. This means that even if the company has not yet been paid for the services or goods it has provided, it can still obtain a loan based on these invoices.

The lender will advance a percentage of the total invoice value to the business and then collect the refund plus interest once the customer has paid their invoice.

The advantages of invoice financing

Invoice financing can help your business by providing quick and easy access to cash. This type of financing allows businesses to borrow money against the value of their unpaid invoices. This can provide a much-needed cash injection when you need it most, helping you grow your business and maintain cash.

Business invoice financing can also help you improve your company’s cash flow by speeding up the process of collecting unpaid invoices. Funds are typically available within 24 hours of submitting a finance invoice, allowing you to quickly get the working capital you need. And because there are no lengthy application processes or credit checks, this type of financing is a great option for businesses of all sizes.

How to get started with invoice financing

Getting started with invoice financing is quite easy. First, you need to find a reputable company that deals in commercial invoice finance loans. Then the application process must be completed, which includes providing personal and financial information relevant to your creditworthiness. Third, you will receive an email confirming acceptance of their program and once approved they will send you detailed instructions on how to use the service in exchange for an agreed down payment at closing plus interest over a period dictated by the terms of the purchase or lease agreement. agreements entered into before the invoice financing transaction takes place.

Why should you choose to invoice over other financing options?

Bill financing is a type of short-term loan that can be used to cover day-to-day expenses. It’s also a great way to fund new or expanding businesses, as funds are provided on an invoice basis with no collateral required. The lender doesn’t care about your credit rating, so you don’t have to worry about applying for a conventional loan. You will get your money quickly and easily without any hassle just how it should be.

Businesses that use bill-to-pay financing often find themselves with more cash than they had before because they can quickly access funds when needed without having too much debt burdening them at any given time.

What are the risks of financing by invoice?

The risks associated with financing by invoice are generally the same as for any other form of business credit. The lender will want to know what you plan to do with the money, and there may be some restrictions on how it can be used depending on the terms of your agreement with the lender. There is always a risk that an invoice will not be paid, which could lead to the imposition of liens on personal property or even bankruptcy if it is a company.

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Hydr is developing a proprietary invoice financing platform https://bthroughz.com/hydr-is-developing-a-proprietary-invoice-financing-platform/ Thu, 13 Jan 2022 08:59:00 +0000 https://bthroughz.com/hydr-is-developing-a-proprietary-invoice-financing-platform/ UK based fintech Hydraulic expanded its proprietary invoice finance platform to integrate with more cloud accounting software vendors, including sage and QuickBooks. After launching exclusively with Xero in 2021, the Hydr platform is now available to more SMEs in the UK who want to leverage their unpaid invoices to optimize cash flow and help fuel […]]]>

UK based fintech Hydraulic expanded its proprietary invoice finance platform to integrate with more cloud accounting software vendors, including sage and QuickBooks.

After launching exclusively with Xero in 2021, the Hydr platform is now available to more SMEs in the UK who want to leverage their unpaid invoices to optimize cash flow and help fuel their growth.

Sage, FreeAgent, KashFlow, QuickBooks and Xero users who sign up with Hydra can get paid almost immediately for the work they’ve done and invoiced, rather than having to wait for long payment terms and even to consider extending their borrowings to maintain working capital.

Customers who link their account to the Hydr platform do not need to duplicate data, they simply continue to set up their invoices with their cloud accounting provider as usual and Hydr will do the rest, funding the approved invoices within 24 hours.

Hydr helps small businesses optimize their cash flow with a digital onboarding that only takes 15 minutes. Hydra’s platform connects to a company’s data and financial information, creating a digital experience without the company needing to submit additional documents. Financing decisions are given in real time and Hydr pays 100% of the value of an invoice within 24 hours.

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Time Finance: invest in the Invoice Finance team with the appointment of Lauren Maloney https://bthroughz.com/time-finance-invest-in-the-invoice-finance-team-with-the-appointment-of-lauren-maloney/ Tue, 14 Dec 2021 08:28:13 +0000 https://bthroughz.com/time-finance-invest-in-the-invoice-finance-team-with-the-appointment-of-lauren-maloney/ [ad_1] Time Finance is pleased to announce that it has appointed Lauren Maloney as Business Development Manager within its Invoice Finance team. Lauren joins over 14 years of experience in the financial services industry. Early in her career, she held relationship management and portfolio management positions at NatWest and Santander, before moving to business development […]]]>


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Time Finance is pleased to announce that it has appointed Lauren Maloney as Business Development Manager within its Invoice Finance team.

Lauren joins over 14 years of experience in the financial services industry. Early in her career, she held relationship management and portfolio management positions at NatWest and Santander, before moving to business development positions in invoice financing at Bibby Financial Services and Newable. In her new role at Time Finance, Lauren will be responsible for building and maintaining strong introductory relationships in the Yorkshire, Humberside and Lincolnshire regions, helping their clients receive the funding needed to fuel the investment and the growth.

Speaking of her appointment, Lauren said: “I am absolutely delighted to join Time Finance. There is a definite momentum in the market, with investments topping the list and many business owners looking for a financial boost to help them capitalize on. new business opportunities in the new year. I ‘m really looking forward to introducing Time Finance invoice financing solutions to my introducers and their clients as companies continue to seek out funders who can help progress to their next phase of growth.

The announcement follows a number of recent appointments and promotions within Time Finance, including Jonathan Johnson as Director of Business Development in their invoice finance team, Jake Bebbington as Director of Business Development in their Commercial Loans Team and Dan Hindmarsh as a Broker Manager in their Asset Finance team. . All of this once again demonstrates the company’s commitment to investing in its people and delivering a solid multi-product solution to UK SMEs.

Andy Hume, Sales Manager (North) at Time Finance, said: “Lauren is a great addition to our team, and we are delighted to have her on board as we continue to expand our presence across the UK.

“As a national sales team, we are committed to providing valuable, core financing solutions to companies looking to unlock additional working capital for innovation and growth. We have ambitious growth targets to continue to provide UK SMEs with easy access to our invoice financing. solutions and Lauren’s appointment will help us get there. ”

Invoice Finance can ease the pressure on cash flow and give businesses the freedom to grow. By freeing up to 90% of the value of unpaid invoices, business owners can access additional working capital and use the funds to meet daily cash flow needs or support innovation and growth. Time Finance offers confidential and disclosed facilities ranging from £ 10,000 to £ 2.5million, with the added flexibility that their facilities can grow alongside a business.

Time Finance also specializes in providing or implementing asset finance, loan and vehicle finance solutions. Their RLS accreditation with the British Business Bank offers an additional opportunity to support the growth of SMEs through financing and asset lending facilities.

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When to choose invoice financing over a business loan https://bthroughz.com/when-to-choose-invoice-financing-over-a-business-loan/ Thu, 09 Dec 2021 13:00:00 +0000 https://bthroughz.com/when-to-choose-invoice-financing-over-a-business-loan/ [ad_1] For new and established businesses, managing cash flow can be a challenge. And if customers get into the habit of delaying payment, you may find yourself stuck as a business if you don’t run into other issues later. Invoice financing works around this problem by allowing you to borrow against the value of unpaid […]]]>


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For new and established businesses, managing cash flow can be a challenge. And if customers get into the habit of delaying payment, you may find yourself stuck as a business if you don’t run into other issues later.

Invoice financing works around this problem by allowing you to borrow against the value of unpaid invoices. The amount of funding available increases as the number of invoices increases and decreases (with associated costs) during quieter times.

Octet supply chain manager Joe Donnachie says invoice financing may be suitable for businesses in a variety of industries – including transportation, labor leasing, and manufacturing – but many remain in the business. ignorance of what he has to offer.

“It is not uncommon for fast growing businesses to ignore that invoice financing is a viable option for them, as it can often get lost in the myriad of other financing solutions on the market,” he said. he declares.

So how do you know if invoice financing is better for your business than a traditional loan? Here are a few things to keep in mind.

Is flexibility a priority?

Founder and CEO of Timelio, Charlotte Petris believes that companies don’t have to choose one over the other, but there are times when invoice financing may be the most appropriate option.

“A business loan is sometimes used in conjunction with invoice financing, but unlike invoice financing, a loan is capped and the loan amount does not fluctuate with cash flow requirements,” she said.

This can sometimes hold back businesses, especially those experiencing seasonal demand and those that are (or could be) in a high growth phase and need additional cash flow.

“For these businesses, it can be difficult to accurately forecast cash flow requirements and having a funding facility that is flexible and evolves with the demands of the business,” said Petris.

What about security?

When you take out a loan from a traditional lender, you will be offered either a secured loan (which requires you to put property, vehicles, or inventory as collateral) or an unsecured loan (which tends to be matched). higher interest rate). .

Donnachie says warranty requirements can be an issue for businesses without physical assets, such as service businesses or those that are just starting out.

“Depending on where your business is at, you may not have the assets available to do this. Even if you do, taking out a loan may not be the best decision for your balance sheet, ”he said.

“Invoice financing is an attractive and flexible alternative. By using your receivables as collateral, you can quickly access valuable cash without having to offer collateral and keep your balance sheet.

The bottom line

Invoice financing is a way for businesses to reduce the long delays between selling a product or service and receiving payment. According to Donnachie, invoice financing may be suitable for businesses that have:

  • Long customer payment terms.
  • Seasonal sales cycles, in which cash flow fluctuates but costs remain constant.
  • Strong demand but limited cash flow.
  • A lack of physical assets to provide as collateral.
  • A desire to keep a healthy balance sheet.
  • A desire for a discount for early payment.

For more information, browse our guide to financing small business invoices.

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Transport company steps up growth plans with £ 600,000 invoice finance package https://bthroughz.com/transport-company-steps-up-growth-plans-with-600000-invoice-finance-package/ Tue, 07 Dec 2021 10:30:42 +0000 https://bthroughz.com/transport-company-steps-up-growth-plans-with-600000-invoice-finance-package/ [ad_1] X Sign up for free to receive the latest news straight to your inbox Register Time Finance has supported Lancaster-based Kidds Transport with £ 600,000 in funding implementing its ambitious growth plans. The family business was incorporated over 65 years ago from its base in Lancashire, where it first offered its services to local […]]]>


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Time Finance has supported Lancaster-based Kidds Transport with £ 600,000 in funding implementing its ambitious growth plans.

The family business was incorporated over 65 years ago from its base in Lancashire, where it first offered its services to local farmers wishing to transport livestock and bales of hay.

Over time, the business grew and began to work with a larger and more diverse customer base, including food manufacturers and pharmaceutical companies.

With a large fleet of vehicles and a highly skilled workforce behind the wheel, Kidds Transport now averages 42,000 miles per week and delivers 1,400 pallets per day.

At the height of the pandemic, Kidds Transport found itself busier than ever. To meet the growing demand for delivery services from its growing customer base, the company turned to funder Time Finance for help.

Invoice finance was the solution, providing additional funding of £ 400,000 to meet daily cash flow needs and an additional overpayment of £ 200,000 XTRA Time to provide additional growth room and to fuel necessary investments, such as as new staff and fleet expansion.

Simon Park, Director of Kidds Transport, said: “We are delighted to be working with Time Finance. The financial support we have received has been fantastic. Not only did this provide an immediate injection of cash, but it also allowed us to focus our efforts on expanding our customer base and bringing more top talent into our business, thereby accelerating our growth.

“With the support of a funder like Time Finance behind us, it is an exciting time for our team and we look forward to the future and the direction we take for the business. “

Invoice financing frees up funds otherwise tied up in unpaid invoices, meaning businesses are no longer held back by a lack of cash flow. With facilities ranging from £ 10,000 to £ 2.5million, invoice financing can help businesses of all sizes.

Rob Walters, Director of Business Development at Time Finance, said: “It was essential to create a facility flexible enough to grow alongside the business and provide the necessary leeway for the investment.

“Kidds Transport is a brilliant company and one that we are delighted to work with. We look forward to continuing to support them in the years to come and help them bring their plans to fruition. “

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Discounting and factoring of invoice financing explained https://bthroughz.com/discounting-and-factoring-of-invoice-financing-explained/ Thu, 21 Oct 2021 00:46:08 +0000 https://bthroughz.com/discounting-and-factoring-of-invoice-financing-explained/ [ad_1] eBook: 101 Guide to Financing Small Businesses This exclusive excerpt from the soon-to-be-released Propell eBook – 101 Guide to Financing Small Businesses – explores discount and factoring options for invoice financing for SMEs. Delivery Invoice Funding Discount is useful for accessing cash from your unpaid invoices without having to wait weeks or months for […]]]>


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eBook: 101 Guide to Financing Small Businesses

This exclusive excerpt from the soon-to-be-released Propell eBook – 101 Guide to Financing Small Businesses – explores discount and factoring options for invoice financing for SMEs.

Delivery

Invoice Funding Discount is useful for accessing cash from your unpaid invoices without having to wait weeks or months for your customers to pay. This allows you to preserve your working capital and continue your business without relying on prompt payment from customers.

What is that?

  • A type of business financing that is offered against the value of your accounts receivable ledger (invoices that you expect your customers to pay).
  • Secured by the value of your receivables, no other asset therefore needs to be offered as collateral.
  • Bill Funding helps manage cash flow by giving you access to cash before your unpaid bills are paid.

Example:

  • You have $ 30,000 in unpaid invoices awaiting payment by your customers;
  • You have to spend $ 10,000 on supplies for your next job, but you don’t have enough money available to cover this expense;
  • You choose to bridge this gap in your cash flow by purchasing invoice financing on your accounts receivable;
  • You benefit from a credit of $ 24,000, or 80% of the value of your unpaid invoices; so
  • When your customers pay your bills, the amount goes into a collection account that pays off the outstanding balance. Surplus funds are transferred to you, net of fees or interest.

Advantages:

  • You don’t have to worry about your credit score, as financing is granted based on the creditworthiness of your customers. If your customers are likely to pay their unpaid invoices, you are likely to be approved for invoice financing.
  • Funding is secured against your unpaid bills, so you don’t need to offer other assets – like your family home – as collateral.
  • You can turn your invoices into cash without waiting for your customers to pay.
  • There are no refunds to manage. Funding is repaid as your customers pay their bills.

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CBA launches invoice financing product for SMEs https://bthroughz.com/cba-launches-invoice-financing-product-for-smes/ Fri, 25 Jun 2021 07:00:00 +0000 https://bthroughz.com/cba-launches-invoice-financing-product-for-smes/ [ad_1] The big bank is deploying a digital invoice financing solution to allow small businesses to use their unpaid invoices to access credit. The Commonwealth Bank of Australia (CBA) has announced the launch of a “self-service” invoice financing solution for SMEs. The big bank announced its new Stream Working Capital offering, a digital working capital […]]]>


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The big bank is deploying a digital invoice financing solution to allow small businesses to use their unpaid invoices to access credit.

The Commonwealth Bank of Australia (CBA) has announced the launch of a “self-service” invoice financing solution for SMEs.

The big bank announced its new Stream Working Capital offering, a digital working capital platform through which small businesses can borrow on their unpaid customer invoices.

Small businesses eligible for “Select” will be able to access Sworking capital this week (June 24), the product to be more widely available in early 2022.

While the solution will initially be available through the direct channel, it will be available through the broker channel when it is rolled out more widely in 2022, the ABC said.

What it offers

The Stream Working Capital platform – which will be limited to business-to-business transactions – will provide up to 80% funding for the value of unpaid invoices.

The funding application process would take 72 hours.

To be eligible for the digital lending platform, the minimum invoice value must be $ 50,000.

Credit limits would then be “tailored” to the business and access to cash would increase / decrease as the value of unpaid bills changes.

The loan amount would automatically decrease as the bills are paid.

Businesses won’t have to pay a setup fee and can use as much or as little as they need. The platform will also be available 24 hours a day.

According to the ABC, companies should pay interest on the amount they withdraw, with interest calculated daily on the outstanding balance. The loan balance is automatically adjusted daily based on the payment of invoices from the company’s customers.

The ABC has partnered with the Waddle invoice finance platform to enable Stream Working Capital.

It uses digital technology and a live stream of customer data through cloud-based accounting software, such as Xero (which acquired Waddle in August 2020), to bolster the working capital needs of a business client. The ABC said it was the main bank to do so.

The Stream Working Capital platform therefore allows companies to link their accounting software and nominate invoices in real time with a unique and automatically reconciled “source of truth”.

It provides visibility into a company’s cash flow situation on all invoices designated for funding, he added.

According to the ABC, the new product will give SMEs access to greater and more flexible financing as the business grows, and reduce manual processes by up to 80 percent.

“Facilitate access to capital for small businesses”

Mike Vacy-Lyle, senior executive at CBA Group, said that while small businesses have traditionally used fixed assets such as real estate to secure an overdraft or loan, Stream Working Capital would instead allow clients to access funds by using their unpaid bills as loan collateral.

Commenting on the release of the platform, Mr. Vacy-Lyle said, “Cash flow is one of the biggest issues facing small businesses, so we looked at how we can meet working capital needs. customers, helping them maximize cash flow and drive business. growth.”

Clare Morgan, executive director of corporate loans at CBA, said the new solution would allow businesses to access cash flow faster to cover short-term operational needs and be better positioned to take advantage of capital assets. for longer term strategic goals and investments.

“Having access to cash flow is vital for all Australian businesses, whether they are a sole proprietorship or one of the largest companies in Australia. We want to simplify the working capital process, especially for small businesses, ”she said.

“Our customers have told us they want to be able to keep more inventory and build relationships with more suppliers to mitigate supply disruptions. They also face increasing pressure from suppliers who want to be paid sooner and buyers who want to extend payment terms.

“Using invoices to access credit solves this problem and can provide some peace of mind for businesses that can now access the money stuck in their invoices so they can pay suppliers or hire employees. It’s a critical component in helping small businesses recover and grow as they continue to navigate a new operating environment during the pandemic. “

Waddle Founder and Director Simon Creighton said: “We are delighted to partner with CBA to make it easier for small businesses to access capital.

“We are passionate about helping small businesses grow. We see this as alleviating time-consuming processes like automating much of the financial process like credit scoring, underwriting, and tracking.

He concluded, “It also gives small businesses the ability to better manage their cash flow, which is essential in today’s environment, and this partnership will provide them with the flexibility and support they need. “

The CBA recently highlighted in a press briefing that it is increasingly focusing on digitization, including plans to use transaction and cash flow data from its 700,000 business customers to form prompts such as loan suggestions.

During the press conference, Mr. Vacy-Lyle said that the lender builds capabilities to help corporate clients forecast their cash flow needs and provide them with digital lending and borrowing solutions based on those anticipated future cash needs.

[Related: CBA hikes floor rate, predicts 2022 rate rise]

CBA launches invoice financing product for SMEs



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Last updated: June 24, 2021

Posted: June 25, 2021

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Malavika Santhebennur

Malavika Santhebennur

Malavika Santhebennur is the Mortgage Securities Editor at Momentum Media.

Prior to joining the team in 2019, Malavika held positions at Money Management and Benchmark Media. She has been writing about financial services for six years.

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Financing Prepayment Invoice Review | Compare rates and fees https://bthroughz.com/financing-prepayment-invoice-review-compare-rates-and-fees/ Thu, 22 Apr 2021 07:00:00 +0000 https://bthroughz.com/financing-prepayment-invoice-review-compare-rates-and-fees/ [ad_1] How does advance invoice financing work? Earlypay bill financing services offer businesses up to 80% (sometimes 90%) of the value of their unpaid bills before the customer is paid. This allows business owners to access the cash flow they need, without having to wait for bills to be paid. Earlypay offers a flexible and […]]]>


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How does advance invoice financing work?

Earlypay bill financing services offer businesses up to 80% (sometimes 90%) of the value of their unpaid bills before the customer is paid. This allows business owners to access the cash flow they need, without having to wait for bills to be paid.

Earlypay offers a flexible and tailor-made service to businesses of all shapes, sizes and industries. Whether your business is just starting out or you’ve been around for a while, Earlypay may be able to help.

Earlypay’s advanced platform integrates seamlessly with your accounting software vendor. So whether you are using MYOB, Quickbooks, or Xero, you can effortlessly simplify your bookkeeping. If you are not using an accounting provider, Earlypay may still be able to help.

How an Earlypay invoice financing service works will depend on your choice of an invoice discount or invoice factoring service, as well as a number of factors relating to your business. The main difference between the two is:

Discount on invoice. Your business retains control of the payment collection process.

Factoring invoices. Earlypay’s professional team takes care of the process of collecting payments from your customers.

Read on to find out if an Earlypay invoice finance facility is right for your business.

Features of Earlypay Invoice Finance

Some of the main features of the Earlypay bill finance facility include:

  • Amount of the loan. Access of $ 50,000 to $ 15 million or more in financing. The exact amounts will depend on your financing agreement and the value of your unpaid invoices.
  • Fast online application. Apply online in a few easy steps.
  • Fast approval. Prepayment typically takes less than 24 hours to let you know whether or not your business is eligible for funding.
  • Quick financing. If Earlypay approves your request, you should see funds in your account within 24 hours.
  • Up to 80% of unpaid invoices in advance. Once approved, you can release up to 80% of your bill funds. The remainder will be paid to you upon payment of the customer, net of interest charges.
  • Credit line. Access a revolving line of credit that grows with your accounts receivable.
  • No real estate security. Earlypay does not require any assets or real estate as collateral for the loan.
  • Secured by your invoices. The loans are secured against your unpaid bills.
  • No payment until your invoice is paid. Your charges will be deducted from the remaining value of your invoice, so there is no need for refunds.
  • No long lock-in contracts. You can fund as many invoices as you want.
  • Integrates with your accounting system. Integrates seamlessly with most cloud accounting systems.
  • Factoring and discount options. Earlypay allows you to maintain control of your collection process or to outsource it to Earlypay.
  • Options disclosed and not disclosed. Your customers don’t necessarily need to know that you are using an invoice financing mechanism. Most invoice factoring agreements are disclosed, while most invoice discount agreements are not disclosed.

How much does the loan cost?

  • The interest. You will be charged an interest rate of 7% per annum. The rate you will be awarded will depend on the financial situation of your business, the length of your business activity and your annual turnover.

Additional fees and charges may also apply.

How to register

If you would like to request an invoice finance facility with Earlypay, please contact the lender directly through their registration form on the Earlypay website, or call 1300 760 205 to speak to the team directly. You will need to provide:

  • Your name
  • Phone number
  • Details about your business, such as your ABN, trading time, and annual turnover.

Although this is a competitive loan product, it is always a good idea to compare your options before submitting an application. For more invoice financing solutions, please see our guide.

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Byte Invoice Finance Review: Compare Features and Fees https://bthroughz.com/byte-invoice-finance-review-compare-features-and-fees/ Fri, 26 Mar 2021 07:00:00 +0000 https://bthroughz.com/byte-invoice-finance-review-compare-features-and-fees/ [ad_1] How does Octet Invoice Finance work? Byte is a non-bank lender providing invoice finance to businesses across Australia. Invoice financing allows businesses to unlock capital tied up in their unpaid invoices before the customer is paid. Some debtors take around 60 days to pay a bill, which can hurt your cash flow. With Byte […]]]>


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How does Octet Invoice Finance work?

Byte is a non-bank lender providing invoice finance to businesses across Australia. Invoice financing allows businesses to unlock capital tied up in their unpaid invoices before the customer is paid. Some debtors take around 60 days to pay a bill, which can hurt your cash flow. With Byte Invoice Finance, you can get your accounts receivable funded within 24 hours.

If your business invoices customers for goods or services provided and you meet Octet’s eligibility criteria, you can apply for invoice financing. If approved, simply invoice your customers as you normally would, upload your invoices to the Byte platform, and withdraw as much (up to 85%) or as little of the invoiced amount as you want. When your customer pays an invoice, they deposit the funds into a designated bank account that Octet manages on behalf of your business. Once the payment is made, Octet will transfer the remaining funds to you – minus any charges – to you.

Features of Byte Invoice Finance

Byte Invoice Finance offers the following features:

  • Amount of the loan. 85% of invoices approved. The exact loan amount will depend on the value of your unpaid bill.
  • No refund. Because your loan is paid when your customer pays the bill, you don’t have to make a repayment on that loan.
  • Secured by your invoices. You don’t need any real or physical property to secure this loan.
  • Quick application. Applying online only takes a few minutes.
  • Quick financing. Once you’ve uploaded your invoices, you can access your funds within 24 hours.
  • Finances grow with your accounts receivable. The higher the value of your invoices, the more access to financing you have.
  • Disclosed or not disclosed. Whether your customers know you are using an invoice finance facility will depend on the financial condition and credit rating of your business.
  • Transparent fees. Octet has transparent fixed fees for all of its customers.

How much does the loan cost?

Octet invoice financing costs will be specified in your loan agreement. Please visit the lender directly for details.

How to request funding for Byte invoices

To apply, simply click on “Go to site” to directly visit the lender’s website. There you can submit a quick request and start uploading your business invoices.

To be eligible for Octet Invoice Finance, your business must:

  • Be in an industry that provides proof of debt
  • Have more than one B2B customer in your accounts receivable ledger
  • Have an annual turnover of at least $ 500,000
  • Have 1 to 2 years of business experience

Before submitting an application, it is a good idea to compare your bill financing business loan options to make sure that you are getting the best possible deal for your situation.

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Small Business Bill Financing: Your Ultimate Guide https://bthroughz.com/small-business-bill-financing-your-ultimate-guide/ Wed, 23 Sep 2020 07:00:00 +0000 https://bthroughz.com/small-business-bill-financing-your-ultimate-guide/ [ad_1] By Katherine O’Chee Wednesday 23 September 2020 fact-checking process and our editorial guidelines. “> Fact verified Disclosure of advertiser As 2020 continues to be a financially tough year for small businesses, finding ways to improve cash flow has become simply essential. While business loans are a popular option, there may be a better solution […]]]>


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As 2020 continues to be a financially tough year for small businesses, finding ways to improve cash flow has become simply essential.

While business loans are a popular option, there may be a better solution for you if your struggle is with slow paying debtors: invoice financing.

What is invoice financing?

Bill financing is basically a line of credit that turns your unpaid bills (or accounts receivable) into financing. So instead of waiting weeks for your customers’ payments to go through, you can have access to that money ASAP.

Please note that only commercial invoices are accepted. This means that while invoice financing would not be suitable for SMEs that deal with consumers (such as retailers), it could be suitable for suppliers, wholesalers and other businesses that have business customers.

How it works?

With invoice financing, you receive part of the invoice (usually up to 85%) as soon as you have delivered your goods or services to the customer. Then, after the customer has paid for the entire product or service, the rest of the funds will be released – less any fees and charges.

As with any line of credit, this option comes with a direct debit facility, which you can tap into whenever you need to.

Patricia Kruse, senior director of business development at Scottish Pacific, says invoice financing facilities can help both the company and its customers stay afloat in today’s climate.

“The facility can help increase the company’s cash flow if some of their customers extend repayment terms during COVID. The business owner can help his own client solve their own cash flow problems by agreeing to the extended terms, ”she says.

Advantages and disadvantages of invoice financing

So is invoice financing the right option for you, or do you prefer another type of business loan? Here are some of its pros and cons to help you decide:

Advantages and disadvantages of financing invoices

What is good:

  • Quick financing: Unlike traditional business loans which can involve heaps of paperwork and debt that you would carry over into the longer term, bill financing is a short-term cash flow solution. It’s a faster way for businesses to access additional financing (in as little as 24-48 hours), which they then typically pay off in 30-90 days with money already owed to them.
  • Low risk: Since this financing option is secured against your bills, you won’t have to worry about losing a valuable asset like your family home in the event of default.
  • No repayment stress: Since your debt is settled once your bill is paid, there is no pressure to make regular repayments, giving you a little more leeway.
  • Flexible installation: Instead of receiving a one-time lump sum, your invoice finance facility grows with your business. As your sales and income increase, so does the level of funding you can access. Kruse says that for this reason, “invoice financing facilities will become increasingly important as the business moves from survival mode to growth.”

To watch:

  • Lack of confidentiality: Your accounts receivable are transferred to your commercial lender who will then generally contact your accounts receivable about the new arrangement. While this may save you time (since you no longer have to collect payments yourself), it does mean that your bill financing facility may be disclosed to your debtors. However, if you are concerned that it will affect your relationship with clients, some lenders like Scottish Pacific also offer undisclosed facilities to address those concerns.
  • Higher costs: Bill financing can be a more expensive option than traditional bank loans, with a fee (either a flat fee or a percentage based fee) charged on top of each bill. That’s why, “it’s important to look for the best deal,” as Kruse puts it. But the caveat here is that different lenders may have different fee structures, which can make it difficult to compare prices.
  • Seasonal impacts: If you’re a seasonal business that sources supplies during off-peak times, invoice financing may not offer much benefit. Kruse explains that “unpaid bills are likely to decrease during any seasonal contraction, which means the amount that can be financed will also decrease.” However, you can get around this problem by considering another type of financing, such as a business facility or a short-term business loan.

Is my business eligible?

Generally speaking, invoice financing is not difficult to obtain, provided you can tick a few boxes. Unlike traditional business loans, your credit score, loan history, and collateral do not play a major role in determining your eligibility.

“Businesses of all sizes and levels can easily be approved. The most important condition for approval is the creditworthiness of your customers, ”explains Kruse.

Indeed, the reimbursement depends entirely on the respect of the payment deadlines by your customer.

To be eligible for invoice financing, Kruse says you also need to make sure:

  • You are a business selling to other businesses (i.e. B2B)
  • You sell products or services to other businesses on credit
  • Your invoices are issued for the performance of a service or the delivery of goods

What happens if my customer does not pay their invoice?

It really depends on your agreement with your lender. In some cases, the responsibility for handling bad debts and paying those bills may still lie with you. But there are also providers who will cover the costs for you or allow you to swap the invoice with one of equal value. Others may let you choose whether or not you want to take responsibility for a potential defect.

Just keep in mind that if you want to be protected in the event of default, the fees will naturally be higher because there is more risk to the lender.

Your invoice financing options

Ready to apply? Check out some notable options below:

Financing of the Waddle invoice
  • Funding from $ 10,000 to $ 4 million
  • Same day approval
  • Funding within 48 hours of approval

Waddle offers invoice financing that integrates with your accounting platform, giving you a real-time credit limit based on the value of your unpaid invoices. It allows you to access up to 80% of the money owed to you in unpaid invoices, with up to $ 4 million in funding available to qualifying businesses.

To be eligible, your business must be incorporated, have been in business for more than 6 months, issue invoices to other Australian companies only when work is complete, and currently have at least $ 10,000 in unpaid invoices. The prices are personalized according to the profile of your company, your sector of activity and the size of your establishment. Upfront fees and transaction fees will also apply.

Scottish Pacific invoice financing
  • Funding from $ 10,000 to $ 150 million
  • No ongoing charges
  • Same day approval

Scottish Pacific takes catering to businesses large and small seriously, which is why with its bill-based financing, its facilities can range from $ 10,000 to $ 150 million. While there are upfront costs to be expected, you won’t have to worry about ongoing charges. The application process is also super fast – just 10 minutes out of your busy workday, and you could be approved the same day and receive up to 95% of your approved value (minus fees) a day later. You have the choice to apply online or by phone.

Funding byte bills
  • Funding of $ 100,000 to $ 10 million
  • Fast approval in 24 hours
  • 85% of your prepaid bills

Octet’s bill financing scores high in flexibility, with facilities that can hold funding between $ 100,000 and $ 10 million, depending on your business needs and your financial situation. Octet says companies only need two minutes to apply online and wait 24 hours for a response. Once approved, 85% of your bills will be paid to you within 24-48 hours – an almost instant cash flow increase.

To qualify for Byte invoice financing, your business should ideally have traded for 1 to 2 years and earn at least $ 1 million per year. There are also administration fees and ongoing service fees which are calculated as a percentage of invoices processed.

Timelio invoice financing
  • Funding from $ 10,000 to $ 100 million
  • Accepts international invoices
  • 10 minute applications

Timelio understands that one size doesn’t fit all. Thus, with its invoice financing, it offers personalized rates as well as facilities ranging from $ 10,000 to $ 100 million to meet different sizes and business objectives. But that’s not all: if you export, Timelio can finance up to 90% of your bills abroad.

With Timelio, there is no minimum turnover requirement; you will just need to have a minimum invoice size of $ 10,000 with clients who are large corporations, government agencies, or who are insured. Online applications should only take 10 minutes and approval can take place in 24 hours. Keep in mind that there are transaction fees for each funded invoice, as well as remittance fees paid to Timelio investors which are calculated daily.

For more business financing options, visit our business loan comparison chart.

Mozo provides general product information. We do not consider your personal goals, your financial situation or your needs and we do not recommend any particular product to you. You should make your own decision after reading the PDS or offering literature, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we do not cover all products on the market. If you decide to request a product through our website, you will be dealing directly with the supplier of that product and not with Mozo.

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