Why your business should consider using invoice finance

With the current strict lending criteria, many businesses in australia are having difficulty getting business finance to generate working capital or expand their business operations. Debtor finance or invoice finance is an alternative and attractive option for small businesses in these circumstances.

Below are some reasons why invoice finance or debtor finance may fit your business needs:

• Debtor finance gives the business a steady and reliable cash flow provided within 24 hours

• Get access to cash of up to 90% against the value of outstanding invoices with debtor finance

• Payments of the business liabilities can be made promptly on time and without the stress of business owners trying to find cash

• Grow your sales by offering your clients extended credit terms. Invoice finance is a strategic solution for business owners who target growth through credit sales as the ongoing supply of cash is linked to sales

• As the business grows, the amount of funding can grow with you

• Increased buying power with a reliable cash flow supplier

• Debtor finance assists with the purchase of a business or cash flow during the transition stage

• Debtor finance or invoice finance results in cash flow that's aligned with the business's performance and growth, rather than being dependent upon personal liquidity of owners

• No real estate security required with invoice financing

• Invoice financing gives your business the option to outsource accounts receivable. This eliminates the need to perform the accounts receivable function, allowing management to focus on growing the business

• Not tying up personal assets - debtor finance or invoice finance does not require owners to tie up their personal assets, for example property. Debtor finance relies solely on the businesses assets

• Increased flexibility with debtor finance – our mortgage brokers have access to over 20 mortgage lenders who specialise in invoice financing, who are independent to banks and offer a range of financial solutions to meet any your business cash flow needs

In the event that your business experiences problems with your trading or through no fault of your own, encounter major road blocks, like the loss of a large client, which could severely affect your business's financial performance, you can be assured that our mortgage brokers will work with you to source a flexible debtor finance or invoice finance solution that caters to your needs and circumstances. Our clients consider using invoice financing as an alternative to a business loan from their current mortgage lender, as it offers a strategic reliable line of funding for their business as they go through the painful process of restructuring.

• Invoice finance can free up cash tied up in unpaid invoices allowing businesses to pay trade creditors or statutory liabilities like the ATO

• Lending criteria through our invoice finance lenders are more flexible than a business loan through a bank, as a result obstacles like trading losses can be worked around rather that used as an excuse not to assist

Intellichoice has access to over 20 lenders who specialise in business cash flow and will assist to find a flexible solution to suit your needs. For more information about debtor finance or invoice finance and how it can help you grow your business, speak to one of our mortgage brokers at Intellichoice by calling 1300 55 10 45. In addition to invoice financing, we have access to other business cash flow solutions including stock finance or inventory finance, trade finance and equipment rental finance.