Welcome to our Frequently Asked Questions about Invoice Finance. Understanding the process of invoice finance can be daunting and confusing for business owners, so it's important to have the information you need to make informed decisions.

Here, you will find a list of questions we have been asked including; what invoice finance is, key benefits, costs, legal requirements and more.

With this valuable knowledge in your hands, you'll be equipped with the information needed to make an informed choice about whether invoice financing is the best solution to support your business growth potential. Let's get started!



Frequently Asked Questions

What is Invoice Financing?

Invoice financing (sometimes referred to as “Debtor Finance”) has the primary objective to accelerate your company’s cash flow by converting your credit sales into cash.

Therefore, invoice finance is simply the use of your outstanding trade accounts to raise working capital.

How does Invoice Finance work?

As you deliver your goods or services to your clients, the invoices that you raise may be assigned (sold) to us freeing up, initially, 80% of their value immediately. The remaining 20% is paid to you, less our charges once your customer has paid the Invoice.

Is Invoice Financing a loan?

No, our invoice finance utilizes your businesses ‘paper assets’ (that is, your debtors ledger) to bridge the cash flow gap between the time your products or services are delivered and the time that your customer pays.

Each invoice pays for itself and therefore the facility is not a loan, but instead an advance against an invoice which is due for payment within 90 days

Do I need to have a mortgage over my home to qualify?

No, most bank overdrafts that are acquired for cash flow purposes require you to put your house on the line. Not with us though, we assess the value of your invoices based on your trading history with your customers, the type of industry that your customers are in and rely upon the invoice and your company to provide the security required.

What fees are involved?

We have transparent fee structure with only two fees, see our “Price Example” below. This gives you an easy-to-use example of our costs for a $1,000 invoice. Generally, our costs are similar to you offering your customers early payment discounts. But with us, the money is in your bank on the same day as you issue your invoice, and we do the waiting instead of you. 


PRICE EXAMPLE:                                               

We have only 2 fees:

A "Discount fee"


3.5% of the face value of the invoice




A "Management fee"


0.0493% per day, calculated daily




We buy the invoice and deduct our Discount Fee of 3.5%, once for each invoice.



$35.00 (3.5% of $1,000)



Then we pay you 80% now and the remaining 20% once the invoice is paid by your customer, less our management fee.

80% of $965 = $772 upfront


20% of $965 = $193
(less management fee for days taken for the invoice to be paid)


What are the benefits to my business?

In three words 'FLEXBILITY’ & 'GREATER PROFITS'. Our invoice finance offers a small or medium sized business the following advantages.

Funds can be available on the same day that you issue your invoice and banked to your account by EFT in cleared funds.
When you have cash in the bank it is possible for you to negotiate better terms with your suppliers for cash and this can include early settlement discounts and discounts for buying in bulk.

Conversely, you eliminate the need to offer early settlement discounts to your customer and you have the certainty that you will receive the cash from us on the same day.

You can re-invest your working capital into producing more goods or services sooner, allowing your business to grow.

Who is the product suited to?

Our product is best suited to manufacturers, wholesalers, service providers and most businesses who provide goods or services to another business. Businesses that are growing but have been restricted by lack of cash in the past are ideally suited to our type of product. Our lending levels can grow in tandem with your own growth.

 It is not suited to retail businesses as we only buy invoices that are “Business to business”.

Do I have to leave my existing bank?

No, you will need to stay with your bank, we do not interrupt your current banking arrangements.

Do I need to sell you all of my invoices?

No, often you will have several fast-paying customers… why would you sell those invoices when payment might only be 7-14 days away.

Subject to our acceptance, you can sell a portion of your invoices to us and raise the working capital amount that you need and use us as a “Come and go” type facility. Most customers tend to pick out their customers that pay within 30-90 Days

What if my customer does not pay the invoice?

If your customer has not paid the invoice within 90 Days we will ask you to buy that invoice back from us. Alternatively, some of our customers elect to swap the unpaid invoice with a good paying invoice to avoid any late payment costs.

Do you charge account keeping fees, audit fees, establishment or review fees?

No, we do not. Our only fees are our "Discount fee" & "Management fee" (An example is part of the FAQ’s. Scroll up to “Price Example” for more detail).

Can you send reports to our book-keeper / accountant on behalf of us?

Yes, we can also send you your Aged Debtors report weekly. Some of our clients have us include their bookkeeper in all of their email correspondence. 

What do I do next?

Telephone our office and ask to speak to our new business manager Sarah. 

We are happy to discuss the needs of your business on a no obligation basis. We also discuss with you the advantages and costs associated with our product and how it can be best used within your business operation.

It all starts with you simply picking up the telephone.

After that, if there are good reason to meet, we usually have a meeting at your business to provide you with more detail before you consider completing our application form. Or you may prefer to visit our city office to talk about your business with us.

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