Leading Accounts Receivable Factoring Services New Zealand

Accounts Receivable Factoring
New Zealand

Your Local Invoice Factoring Specialist

The Cash Your Business Needs

Accounts Receivable Factoring

It is no secret that slow-paying customers can strain your cash flow. Any small business owner knows that waiting for customers to pay invoices while trying to cover expenses and payroll is frustrating. It’s even worse if outstanding receivables are holding your business back from taking on new opportunities. Accounts receivable factoring is a simple way to get paid faster – typically within 24 hours – for outstanding receivables.

Accounts receivable factoring works by selling your open invoices to us as a factoring company, in exchange for fast cash. As a result, companies have access to capital to meet payroll, pay bills, purchase equipment and supplies, and much more.

Companies use accounts receivable factoring because it is a fast, simple and debt-free financing solution for businesses that cannot wait for payments from their customers. We customise our factoring services to fit the unique situation of each client and help them reach their business goals.

With the available cash provided by factoring, businesses can take advantage of new opportunities for growth. Adding equipment or staff, opening new markets, or introducing new products are all much easier with cash in hand. Accounts receivable factoring is an ideal choice of financing for many companies. Those in a start-up or growth phase are often ineligible for traditional bank financing.

There are also situations where factoring receivables is a better choice than bank financing. Top factoring companies like Invoice Factoring NZ have experience in a number of industries, companies can gain insight and information on industry best practices and current trends.

How It Works

Step 1

Invoice Your Customer

Step 2

Invoice Finance Company Pays 90%

Step 3

Customer Pay Invoice Finance Company

Step 4

You Receive The Remaining 10% (less fees)

Invoice Finance Product

Single Invoice Finance

If you have single invoices that you would like that you can’t wait to be paid for send them to us for immediate payment now. You do not need to commit to an ongoing finance facility, just send the invoice to us for payment today. Use the facility as and when you need to with no ongoing obligation to you.

Any existing funding facilities and securities you have can remain in place. As we are are purchasing an individual invoice not providing an ongoing loan we are happy to ‘sit behind’ and bank GSA’s or other security given over your business.

As our security is the invoice, not your company, an in depth credit review is not required, we will be happy to lend to start up businesses and you do not need to own any property or other assets.

Submit an invoice below and we will contact you promptly to get it funded.

Invoice Finance Product

Invoice Factoring

Invoice Factoring (or invoice finance) give you on call access to up to 90% of your debtors on ongoing basis. For example:

  • Debtors ledger = 50K: Access an on-call overdraft of up to 45K
  • Debtors ledger = 200K: Access an on-call overdraft of up to 180K

We are able to access your debtors ledger automatically by linking to XERO or you can submit invoices on a weekly basis if you prefer. Your customers are then instructed to pay a new bank account that we set up for you that can also link to your XERO.

We pay up to 90% of the value of your debtors ledger immediately and the remaining 10% is paid to you when your Customer pays.

Invoice factoring can generally be used alongside any other cash-flow facilities that you have and can provide a large cash injection without the requirement for any property security or other arduous conditions that the bank will require.

Invoices can be funded for up to 90 days from the date that they are created.

The costs for an invoice finance facility will vary depending on the size and risks involved but will generally always be less than what you offer your customers for prompt payment discount.

Invoice Finance Product

Undisclosed Invoice Discounting

Undisclosed Invoice Finance, for those who qualify, provides all of the cash flow benefits of an invoice finance facility without notifying your customers of the relationship.

Each week up to 90% of the value of invoices created is made available to use on call like an overdraft.We access your accounting systems and provide you with this seamless cash flow overdraft.

A Fast Growing Financial Option

Invoice Finance

Invoice financing, or invoice factoring, is an option that is growing exponentially worldwide and is still relatively new in New Zealand. Invoice factoring is a financial transaction whereby a business sells all or a portion of its accounts receivable (invoices) to a third party (called a factor) at a discount, in exchange for immediate money with which to finance continued business.

The NZ invoice factoring market is currently at $1billion and growing, while in Australia is it has been valued at $78 billion.

Invoice Factoring NZ is one of New Zealand’s leading specialist business financiers.

Our service focuses squarely on the smaller SMEs who benefit most from improved cash flow using their main asset, unpaid invoices. We’ve the advantage of extensive experience and cutting edge software that provides real time transparency through a unique online client interface.

If you think invoice financing could be the solution for your cashflow woes, then contact us today.

New Zealand

Invoice Factoring for SME's

More than 97% of NZ businesses fall into the SME category and they employ 30% of our country’s workforce. So whether they thrive or fail has a big impact on our economy.

In Australia, businesses are waiting nearly eight weeks to be paid by other companies, with the average invoice payment time rising to 55 days for the first quarter 2013. In New Zealand, it currently stands at 43 days – still too long for those needing to pay staff and with their own suppliers demanding payment on 20th of the month terms.

Increasing payment terms and delays are pushing the limits for many small businesses which depend on incoming cashflow to pay their own suppliers and staff on time. Indeed, surveys show that more than 70 per cent of small businesses expect cash flow to be an issue to their operations.

Many debt financing options for SMEs can be restrictive with prohibitive terms or finance rates, as those who have had to provide guarantees against their personal assets can attest.

Sick of waiting until the 20th of the month or being paid 60 or 90 days from when you invoice? With Invoice Factoring now everyday can be like the 20th of the month. Get access to funds when you invoice without the huge wait for clients to pay.Invoice Factoring with Invoice Factoring NZ

Frequently Asked Questions

Do I qualify for invoice finance?

If you are dealing with other businesses on credit terms and invoicing for completed work or services you will likely qualify for invoice finance.

Do my debtors need to know?

In most cases your debtors will need to be made aware of the invoice finance relationship. This is not generally a bad thing as most companies are already dealing with invoice finance companies as it gains in popularity.

Some Clients may, however, qualify for our undisclosed invoice finance product. This product is entirely undisclosed to your customers.

With undisclosed invoice finance we connect to your accounting system and load the total balances you create on a weekly basis. You are allocated a new anonymous bank account for your customers to pay into.

To qualify for invoice finance you need to be profitable with a good spread of debtors.

What happens to the 10% not paid up front?

Up to 10% of the value of invoices is retained until the debtor pays. It is then immediately released into availability (less any fees)

Invoice Factoring & Finance

How long do I need to have traded to qualify for invoice finance?

In most cases we will be happy to fund start ups using invoice finance. Our security is in the debtor that we are funding so trading history as not as important as for other products.

Do I need to fund all of my debtors?

With our single invoice finance facilities it is entirely up to you which customers you fund and which you do not.

In most cases we would prefer that if you are funding some invoices for a single debtor that you will fund all of them to prevent any confusion.

If you wish to stop funding a particular debtor just allow it to repay.

What does invoice finance cost?

An application really needs to be received to price an invoice finance facility, but the cost is generally less than what would be offered for prompt payment discount.

Interest is charged on the balance of what is owed and charged monthly. This is operates and costs roughly what a standard bank overdraft does.

A fee is charged on the face value of invoices presented for funding that can be anywhere between 0.5% to 5.0% depending on the application.

There are no line fees or hidden costs

Here to Help

Growth Focused

Let Your Ideas Shine

Solve Financial Problems

Trusted & Experienced

About Us &

What We Do

Invoice Factoring NZ operates from their Auckland and Whakatane offices and has the clout of this New Zealand icon company to support its factoring operation. We are also able to provide vehicle, plant and equipment and property loans directly from Asset Finance.

We are not a bank, you are not a number

While New Zealand banks are very good they will always lend on their terms only and do not have the same flexibility that our specialist invoice finance company does. We learn our client’s idiosyncrasies and adapt our facilities to suit individual needs in the spirit of partnership.

Professional yet flexible

We have professional, international grade systems and an interactive client portal that enables us to provide headache free funding solutions. Our flexibility in no way compromises the professionalism that Asset Finance has been delivering to customers for many years.

Competitive rates

Factoring with Invoice Factoring NZ does not need to be expensive as our tried and proven systems serviced hundreds of New Zealand clients in the past. We charge a simple interest rate and a single admin fee based on invoice value. If your invoices are paid within 90 days this is it, we do not charge additional fees when an invoice goes to 30 or 60 days as many other New Zealand factoring companies do.

Invoice Discounting

We provide Invoice Discounting services.

Invoice Factoring

We provide Invoice Factoring services.

Invoice Finance

We provide Invoice Finance services.

Invoice Funding

We provide Invoice Funding services.

Accounts Receivable Factoring

We provide Accounts Receivable Factoring services.

Accounts Receivable Financing

We provide Accounts Receivable Financing services.

Debt Factoring

We provide Debt Factoring services.

Debtor Finance

We provide Debtor Finance services.

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