Service-based and professional firms throughout Australia are increasingly using Invoice Finance to help manage cash flow and keep their operations running smoothly.

Each year, our SME Growth Index research reports higher rates of Invoice Finance usage. And when you consider that average invoice payment time for clients can stretch from 30 to even 90 days, it’s easy to understand why.

By unlocking the value tied up in their unpaid invoices, agencies and consultancies can access a flexible, long-term line of credit without needing property as security and without taking on debt.

To explore how Invoice Finance works, click here.

Why is cash flow a problem for agencies and consultants?

Many professional services businesses are paid by their clients on retainers. Some receive payment at certain project milestones, and others provide excellent service by offering long payment terms.

All three of these situations can make cash flow management difficult as incoming cash can be unpredictable.

Late-paying corporate and government clients make the issue even worse, and can leave service-based small and medium sized enterprises (SME) struggling to cover payroll, tax and supplier costs.

  • Irregular cash flows make meeting even steady fixed costs challenging
  • It can be difficult to pay staff and contractors on time
  • Directors and owners can sometimes turn to personal funds or overdrafts
  • There is limited ability to grow, expand and take on new projects without working capital

Without a robust financial solution, these professional services businesses can struggle not just to grow but to maintain operations as is.

How is Invoice Finance a solution to this problem?

Invoice Finance allows businesses to access the value of their unpaid invoices early. By converting your accounts receivable ledger into immediately available working capital you’re able to unlock the previously inaccessible cash owed to you when you need it most.

Instead of being at the mercy of your clients’ accounts payable department, you can access the money billed for in advance.

There are many benefits to Invoice Finance including:

  • Flexible facility allowing you to maintain control over your cash flow
  • Working capital in as little as 24 hours from approval
  • Up to 85% of your invoices’ value initially and the remaining balance to follow payment
  • No property or asset required as collateral
  • Revolving facility allowing for long-term cash flow management

Why choose Invoice Finance instead of a bank overdraft or loan?

If you are a business invoicing other businesses for services, Invoice Finance can be the solution to getting paid faster.

Unlike a traditional bank loan or overdraft, alternative working capital solutions, Invoice Finance is secured against your outstanding invoices and not your property or other assets.

  • Your funding limit increases with your sales levels making it scalable alongside your growth
  • No strict principal and interest repayments
  • Faster access to working capital and less strict eligibility criteria

How should you use Invoice Finance effectively?

Wages and contractor payments are usually the largest recurring expenses for service-based businesses. Invoice Finance can help ensure you have the working capital required to meet payroll, even when your clients are slow to pay their accounts

  • Cover payroll, superannuation and PAYG on time
  • Pre-pay contractors and freelancers to secure top talent
  • Invest in sales and marketing to increase growth
  • Invest in new hires ahead of revenue
  • Take on larger or longer-term client projects

If your business, agency or consultancy finds that cash flow is affected by seasonal fluctuations in work, project spikes or long payment terms, Invoice Finance gives you the control and reliable access you need without renegotiating bank facilities and red tape.

Which professional services and industries are suited to ScotPac Invoice Finance?

Invoice Finance from ScotPac is only available for business-to-business companies.

If you issue invoices on standard trade terms and have creditworthy customers, this customisable solution could be for you. This includes:

  • HR, recruitment and labour-hire providers
  • Marketing, digital and creative agencies
  • Management, IT and strategy consultants
  • Engineering, architectural and design practices
  • Legal, accounting and other advisory firms

Who is eligible?

Whilst the team at ScotPac have made eligibility far easier for SMEs across Australia, there are still some criteria you will need to consider:

  • Do you conduct B2B transactions on credit terms?
  • Do you have at least six months’ worth of trading history?
  • Do you issue a monthly invoice volume of $10,000 or more?
  • Do you operate in Australia and invoice in AUD?

If the answer is yes, then you likely qualify for Invoice Finance with ScotPac.

Why choose ScotPac for your Invoice Finance?

There are many reasons why choosing ScotPac for your working capital solution needs is the right way to go.

  • We’re Australia’s largest non-bank lender
  • We currently support over 9300 businesses
  • We currently fund $26.3 billion in invoices annually
  • We bring 35 years of experience to the table
  • We specialise in customised, flexible and fast funding

We work with our clients as partners to make sure that they have the finance solution required to fuel their success.
So if you are a professional services provider, an agency or a consultancy looking to get paid faster, contact us today to find out more.

Invoice Finance FAQs

How quickly can professional services firms access working capital with Invoice Finance?

Once your facility is approved and set up, you can access funds in as little as 24 hours from invoice submission.

Do I need property as security to access Invoice Finance?

No. With Invoice Finance, your unpaid invoices serve as collateral, so property (or other asset) security is often not required. 

Can new or fast-growing agencies qualify for Invoice Finance?

Yes, provided you meet basic eligibility criteria around business-to-business invoicing, trading history and creditworthy customers, even newer businesses or those with weaker credit may be able to qualify. 

Will my clients know if I use Invoice Finance?

With Invoice Discounting, one form of Invoice Finance, you can retain control of your own debt collection, which can provide greater confidentiality with your customers. 

With Invoice Factoring, our team will be responsible for collecting payment from your clients, so confidentiality is not guaranteed. 

How do I find out if my agency or consultancy is eligible for Invoice finance?

You can review the eligibility criteria and submit an enquiry directly through ScotPac’s Invoice Finance page for Australian businesses. For custom consultation and advice, simply reach out to our team today.