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No responsibility to collect Invoices

Receive up to 90% of your invoices.

Funding possible within 24 hours of approval

No bad debts risk

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What is Invoice Factoring?

Invoice factoring also is a form of invoice financing. In invoice factoring a business gives control of a part or their entire accounts receivables ledger to the lender, wherein the responsibility to collect the debt is passed on to them. Businesses commonly use it to replenish the cash reserves that are suffering from depletion due to too many pending invoices. You can receive an advance of up to 90% in funds against the receivable ledger.

Broc Finance helps you by facilitating invoice factoring, connecting you with a credible lender. We enable you to secure a line of credit against the accounts receivable, by connecting you with credible finance companies.

What you should know about Invoice Factoring

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Salient Features of Invoice Factoring

Invoice factoring carries the following traits that make it easy for businesses to secure funding.

  • Offers flexible business financing options to enterprises or companies of all sizes and stature.
  • Easy to get approval even with ATO debt, poor credit history, and short span of trading.
  • Does not require a real estate security or collateral against the financing.
  • Invoice factoring funds scale along with the business.
  • Funding is possible within 24 hours of approval, especially when collaborating with Broc Finance.

Difference between Invoice Discounting & Invoice Factoring

Invoice Discounting

The business uses its outstanding accounts receivable as security or collateral to secure funding.

The control and responsibility to collect debtors lies with the business.

You can receive up to 95% of the invoice value.

Collection risk remains within the business.

You cannot opt for non-recourse factoring.

Invoice Factoring

The business sells its accounts receivable to a finance company. Instead of the in-house debt management team, it’s the invoice financing company that chases the pending invoices.

The control and responsibility to collect debtors lies with the factoring company.

You can receive up to 90% of the invoice value.

Collection risk is passed on to the factoring company.

What Businesses can benefit from Invoice Factoring?

Invoice factoring is suitable for SMEs, which are seeking growth or already scaling their development but need urgent funding to stay on the growth track. The following types of businesses can reap the benefits of sourcing invoice factoring.

  • Limited Companies
  • Single traders
  • Start-ups
  • Joint ventures

If we have to point out industries that mostly opt for invoice factoring, then those will be:

  • Wholesalers
  • Traders
  • Manufacturing
  • Transport and Distribution
  • Staffing/Labour Hire
  • Engineering

Most SMEs do not have the infrastructure support to chase the pending invoice collections. A significant percentage of accounts receivable can create a financial deficit, thus disrupting the regular business and long-term growth. These hurdles can either stunt the growth or make it sluggish, which every business owner wants to avoid.

That’s where an invoice factoring comes to their rescue. With the outstanding invoice collections being taken care of, the business owner can focus on the core processes of the organization. It enhances performance and productivity.

Broc Finance offers you complete support in facilitating invoice factoring for you from reliable and credible financial players in Australia.

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Why should you choose Broc Finance?

Tailor made options

Being a small business owner, many of our clients are not sure of right loan product for their businesses. Our lending specialists understand their needs and recommend tailor made options.

Personal Consultation

Unlike business loan marketplace websites which use AI based algorithms to match your requirements, we provide obligation free personal consultation as every business is different and an AI based algorithm may not provide them the optimum solution.

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Competitive Pricing

We endeavour to achieve the optimum business loan solution for our clients at the most competitive pricing possible.

Clear communication

We understand the essence of time so don’t believe in wasting our customers time by giving false hopes. Transparent and clear communication is in our DNA.

Real results with real people.

118+ customer reviews

5.0

M

Mai Yang

Absolutely wonderful service! Saroj was amazing with keeping us up to date with our loan application which was approved quickly without any hassle. I would definitely recommend Broc Finance!

K

Khanyi Moyo

Thank you. This was a great experience with a team that takes time to ask what your needs are then help you find the best deal.

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Aghar Tefera

Fantastic service!! Very nice & helpful staff!! I had the best experience and got things done promptly and professionally! Thank you Broc Finance 😊!!

L

Liesel Collings

Wonderful service by Saroj. Took care of my requirements for business loan. Turnaround time from application to disbursement was 2 days.

A

Abhishek Chhugani

Wonderful service by Saroj. Took care of my requirements for business loan. Turnaround time from application to disbursement was 2 days.

A

Atulkumar Patel

I don't want to miss this opportunity to say About Saroj Work that he just made it impossible job into possible , I have got loan of 1.5 million event though I have very low credit score . Great work , and highly recommend for any kind of loan issues.

J

Jas Singh

Great services, great effort by Saroj.

M

Michael Banabakis

Easy to deal with and nothing was a problem!!

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Frequently asked questions

Debt factoring is more like a business transaction than a traditional form of financing. You are selling your invoices to another company that will handle the chasing and the collection. It does not follow the usual rules of a business loan. It helps businesses to secure funding and liquidate its receivables ledger.

You need the following documents to prove your eligibility for debt factoring.

  • An active ACN or ABN.
  • Pending invoices with other businesses in Australia.
  • Invoice proof of the delivered services or goods. 

Unlike invoice financing, where there is a choice between confidentiality and disclosure, in factoring, your customers will know about the transaction. It’s because you are selling your invoices to a third-party factoring company.

Generally, the approval process may take between 3-7 days, and you can have get funded within 24 hours of approval.

Invoice discounting is all about the beneficial aspects of business financing. The only con that it has is that this is not suitable for all businesses specially B2C businesses.

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