Everyone knows cash is king. It’s the lifeblood of any business. That’s why it’s so important to have a stable source of working capital to pay employees, purchase new equipment, meet seasonal demands, and more. That is where accounts receivable financing comes in.
It is when a business sells its A/R (accounts receivable) to a factoring company and receives short-term business funding in return. The process is a speedy and efficient way for a company to secure working capital without going the near impossible route of obtaining a bank loan. The company can get up to 80% of the invoice amount advanced to them. Accounts receivable financing is an excellent way for the unbankable to obtain business funding fast.
Accounts receivable financing is asset-based financing that allows business owners to access capital that’s secured by outstanding invoices. As an accounts receivable financing company we will advance you up to 80% of the value of a given outstanding invoice.
It turns your unpaid invoices into cash. It is based on your customer’s ability to pay, not yours. The financing available can go up or down based on your needs and allows you to easily manage your A/R. No more collecting payments from customers – we’ll take care of that. Plus, it’s the only form of financing that truly grows with your sales. More business equals more invoices, which means more availability.
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 Factoring (or invoice finance) give you on call access to up to 90% of your debtors on ongoing basis. For example:
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.
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.
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.
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.
If you are dealing with other businesses on credit terms and invoicing for completed work or services you will likely qualify for invoice finance. 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. Up to 10% of the value of invoices is retained until the debtor pays. It is then immediately released into availability (less any fees)Do I qualify for invoice finance?
Do my debtors need to know?
What happens to the 10% not paid up front?
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. 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. 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 costsHow long do I need to have traded to qualify for invoice finance?
Do I need to fund all of my debtors?
What does invoice finance cost?
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.
We provide Invoice Discounting services.
We provide Invoice Factoring services.
We provide Invoice Finance services.
We provide Invoice Funding services.
We provide Accounts Receivable Factoring services.
We provide Accounts Receivable Financing services.
We provide Debt Factoring services.
We provide Debtor Finance services.
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