Invoice Factoring and Invoice Discounting is available in days, not weeks.
It has been estimated that in the NZ, that there are almost 3.8 million late invoices due to small business owners yet to be paid. Keeping customers in mind, at Invoice Funding Solutions, we make factoring and invoice discounting easy to obtain with minimal paperwork. We normally advance 80% of the value of approved invoices, which is more than what the traditional overdraft facility would fetch for you. Whilst a portion of our decisions is based on financials, tax returns or collateral offered. We make our decisions primarily on the invoicing process and credit strength of the account debtor (buyer). We specialize in evaluating and provide factoring or invoice discounting facilities in less than a week. We adopt a simple approval process and we can expedite initial funding generally within 3 to 5 working days once all forms and requirements are provided. Our clients can receive the benefits of our prompt service and begin to use their funds within days of completing an application.
The Hidden Collateral: Your Accounts Receivable
Businesses that sell on credit terms have a hidden asset that most owners do not realize can be used for collateral. Invoice Funding Solutions specialises in collateralising and financing accounts receivable. The receivables are pledged as collateral and the business may draw cash against the eligible accounts receivable at any time. Factoring and invoice discounting are not loans, so there is no need to make payments or create debt to your business.
Which Industries Qualify for Factoring and Invoice Discounting?
Any business can qualify for factoring and invoice discounting if it sells goods or services on normal credit terms, with no stage payments. Every industry is evaluated differently because no industry invoices the same method. As a rule of thumb, your business must sell to a customer (debtor) having good caliber. The debtor must be another business. Most of the industries such as wholesalers, manufacturers, temporary staff agencies and providers of business services are suitable for factoring and invoice discounting. Factoring and invoice discounting may not be suitable for retailers and businesses that depend on long-term service contracts or those following stage payments as payment norm. Ideally if the invoices have been raised on credit terms in arrears of the goods or service delivery and agreed as payable by the debtors, they are eligible for a debtor factoring or invoice discounting facility.