Invoice Discounting in Australia
Is your business struggling with a steady cash flow due to mounting accounts receivables? Is the financial gap disrupting your business-as-usual? Why not use your unpaid accounts receivables to secure business financing to replenish the cash pot? Here’s invoice discounting to bridge the financial gap of your business.
What is Invoice Discounting?
Invoice discounting is a form of invoice financing, which allows businesses to secure a line of credit by putting the unpaid invoices as security or collateral. Typically, you can get funds up to 95% of your pending invoices. Once the payment is collected from the concerned debtors, the lender releases the remaining balance net of its interest/fees. You can redraw funding against new invoices, which are due.
Invoice discounting is a revolving business line of credit that aligns itself to the expected income of the business. It minimizes the cash flow struggle, giving you the necessary funds in advance to invest towards the growth and expansion of your business while covering daily expenses.
Think it is just the aid you need to keep your business on its uphill climb? Then Broc Finance can help by facilitating the invoice discounting facility by connecting you with credible lenders.
Critical Information Sheet
|Loan Amount||$5k- $150M|
|Can be used for||
|Repayments||Gets settled against payment of invoices within 60-90 days|
|Security||Secured against current assets of the business No real estate security required|
|Pre-Approval Time||24 hours – 72 hours|
|Unconditional Approval and Settlement Time||7-10 days|
|Interest Rates||Starts from 4.95% p.a.|
Key Features of Invoice Discounting
Broc Finance facilitates invoice discounting for businesses of all shapes and statures. Our approach towards making the funding accessible to businesses is all about ideating solutions that fit specific requirements.
Invoice discounting has the following traits:
- You can acquire up to 95% of your unpaid invoices.
- We offer both confidential and disclosed forms of invoice discounting.
- Your business gains access to flexible and fast funding opportunities.
- You can get the funds without pegging a real estate security against the loan amount.
- Businesses can retain complete control through the continuation of invoice collections.
- The funding consecutively increases with your business growth.
Invoice discounting empowers you and your business to be less dependent on the accounts receivables ledger and leverage the deficit to mitigate the same.
What are the benefits of invoice discounting?
Invoice discounting as a form of business financing has multiple merits, especially when you have a finance broker like Broc Finance by your side. Pending invoices usually become a liability for businesses. But here is your chance to leverage that liability and turn it into a lucrative business loan opportunity. Here’s how you can benefit from invoice discounting.
- It gives you easy and fast access to immediate cashflow against invoices payable in future.
- Invoice discounting generates larger limit without having to provide any real estate security. You can peg your pending invoices and get funds.
- Compared to other forms of business financing, invoice discounting has a higher approval rate at a better pricing.
- Unlike secured business loans and other similar forms of financing, invoice discounting does not require any security or real estate collateral.
- There are no fixed repayments at regular intervals like traditional financing options for businesses.
- Invoice discounting give you the option to outsource your collections.
Is your Business Suited for Invoice Discounting?
While at Broc Finance, we cater to the financing needs of all kinds of businesses some are more suited from invoice discounting, such as businesses that:
- Offer services or products to other businesses (B2B Services).
- Invoice after the delivery of their goods and services.
- Have an outstanding invoice less than 90 days due for payment.
Few of the industries where invoice discounting can be suitable:
- Wholesale trade
- Recruitment/Labour Hire
- Food and beverages
Do not hesitate to reach out to our team if you dint fit into the above-mentioned traits. Surely, we can make things work for you, facilitating the needed funds for your business.
How Broc Finance Can Help You?
In a short tenure, Broc Finance has helped Australian businesses, especially the SMEs to secure diverse financing options and facilitate the same via credible lenders. We have a robust network that comprises the top lenders in the country. Our accessibility to varied business loans makes it easy for businesses to get the kind of financing that’s best suited for them. The following approach makes us stand out from our competitors:
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.
- 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.
- Clear Communication: We keep our clients well informed about the stepwise progress of their loan application through clear communication in a timely manner.
- Competitive Pricing: We endeavour to achieve the optimum business loan solution for our clients at the most competitive pricing possible.