Convert your outstanding invoices into an immediate cash flow boost
RECEIVE UP TO 95% OF YOUR INVOICE VALUE WITHIN 24 HOURS
YOUR FAMILY HOME ISN’T REQUIRED AS SECURITY
FACILITY GROWS IN LINE WITH YOUR BUSINESS
What is Cashflow Finance?
Cashflow Finance is a funding solution that provides a business with fast access to funds based on expected future cash flows. You can unlock the capital tied up in your accounts receivable ledger and receive immediate funding based on the value of your outstanding invoices.
If you sell to other businesses on credit terms, a flexible Cashflow Finance facility can help you quickly raise working capital to manage your cash flow and support the growth of your business.
You can access up to 95% of the value of your outstanding invoice upfront as a cash advance within 24 hours. Instead of waiting for 30+ days for your customers to pay, you can receive the money owed to your business today.
Tailored to you
Why ScotPac?We believe in relationships, not transactions, and make it our business to know yours. With over 30 years’ experience, you can count on us to see the true value of your business.
Who does it suit?Get started
Cashflow Finance can benefit any business that sells to other businesses on standard credit terms. We offer a range of Cashflow Finance solutions that can be tailored to the needs of your business. SMEs that struggle with slow-paying debtors and seasonal sales cycles and enterprise companies that suffer cash flow gaps due to extended payment terms can benefit from a cash flow lending solution.
Some key industries we support:
- Recruitment & Staffing
- Wholesale Trade
- Transport & Storage
For more information about how we can help your business, fill out an enquiry form or call us today.
HOW DOES CASHFLOW FINANCE WORK?
Cashflow Finance is a type of Business Finance that is based on expected cash flow. The most common type of Cashflow Finance is Invoice Finance.
An Invoice Finance facility allows a business to use its outstanding invoices as collateral for funding. The funding process involves the following steps:
You raise an invoice and send it to your customer after completing an order. At the same time, you submit the invoice to ScotPac for funding.
We transfer up to 95% of the invoice value upfront as a cash advance. The funds are typically made available within 24 hours of the invoice being submitted.
When the invoice is due, ScotPac collects the amount owed on the invoice from the debtor.
Once payment has been received, we transfer the remaining balance of the invoice (usually 5%) to your bank account, less fees.
Cashflow Finance releases capital tied up in unpaid invoices so that you can put tomorrow’s payments into your business today. It can be a helpful solution to overcome cash flow gaps, quickly raise working capital, and get fast funding to cover operations and unexpected costs.
WHAT ARE THE MOST COMMON TYPES OF CASHFLOW FINANCE?
Invoice factoring and invoice discounting are two of the most used types of cash flow lending in Australia.
Invoice factoring involves a business “selling” its outstanding invoices to the factor. The finance company will then take on the responsibility for collecting payment on the invoice. This type of Cashflow Finance can benefit SMEs that don’t have a dedicated internal collections department.
Invoice discounting is an alternative cash flow funding solution where a business can use its outstanding invoices as collateral to access a line of credit. Unlike factoring, the business will still be responsible for collecting payment of the unpaid invoice. This can be beneficial if you want to keep the funding arrangement confidential.
WHY WOULD YOU USE CASH FLOW LENDING?
There are many reasons why a business could benefit from Cashflow Finance. For example, slow-paying customers, periods of rapid growth, unexpected costs, and seasonal sales can all result in a shortage of working capital.
You can use Cashflow Finance to quickly raise working capital to cover expenses, pay suppliers, and take advantage of opportunities. While this type of Business Finance is typically used to cover short-term cash flow gaps, it can also fund expansion and growth. For example, you can raise capital to hire new staff, purchase new equipment, fund marketing campaigns, or expand your business premises.
I don't have a support accounting package, can I apply?
yes, Scottish Pacific provide a range of other solutions that can help. Please enquire now or call us on 1300 665 457.
HOW MUCH FUNDING CAN I GET?
You can access up to 95% of the value of your outstanding invoice as a cash advance in less than 24 hours. The amount of funding you can access is limited by your expected cash inflows. This can be beneficial as funding limits increase in line with your business growth. As you take on more customers and increase your sales, your line of credit increases.
If you are looking to fund a significant one-off business expense, an Equipment Finance facility may be a more suitable funding solution.
DO WE NEED TO SEND IN ALL INVOICES?
You can send a single invoice or your entire accounts receivables. Cashflow Finance includes a range of flexible funding solutions. You can choose a Selective Invoice Finance facility that gives you complete control over the number of invoices you submit for funding. We also provide full-service factoring solutions that enable you to focus on making sales and growing your business while we take care of the management and collections of your accounts.
WILL MY CUSTOMERS KNOW WHEN I FINANCE AN INVOICE?
It depends on the type of funding facility you choose. With a confidential invoice discounting facility, your customer will not be aware of the funding arrangements. You will be the only point of contact with your customer and handle the invoice payment collection.
With an invoice factoring facility, your customer will be aware of the funding arrangement as we will manage your accounts and collections for you. This frees up your time and resources, so you focus on your business’s growth and core operations, but your customers will be aware of the partnership with ScotPac.
IS CASH FLOW LENDING A GOOD ALTERNATIVE TO A TRADITIONAL BUSINESS LOAN?
Yes. More and more SMEs in Australia are turning to Cashflow Finance as an alternative to traditional business loans. Funding solutions like Invoice Finance are much more flexible and accessible.
Unlike a traditional business loan, Cashflow Finance doesn’t require real estate security and isn’t subject to the same strict lending criteria. You can quickly get the funding you need without tying your business down to long-term debt and lengthy repayment terms.
WILL CASHFLOW FINANCE AFFECT ANY EXISTING FINANCIAL ARRANGEMENTS?
Our solutions can sit alongside your existing funding arrangements. Cashflow Finance is considered an off-balance sheet form of financing that is categorised as cash flow from operations on your cash flow statement. There is also no property security requirement. You can use Invoice Finance as an additional source of funding to cover unexpected cash flow gaps or as a longer-term facility that helps you raise the capital you need from within your business.
IS CASHFLOW FINANCE SUITABLE FOR START-UPS?
Yes. It can be an excellent funding solution for start-ups and small businesses that struggle to manage cash flow during periods of rapid growth. A growing business is cash hungry. But traditional loans and funding options are typically out of reach for companies with a short trading history.
A Cashflow Finance facility can provide you with the working capital you need to keep your business moving forward and capitalize on opportunities. We’re growth enablers. Our clients grow 3 times faster than the average Australian business.
HOW MUCH DOES CASHFLOW FINANCE COST?
The cost of Cashflow Finance depends on the type of funding facility, the number of invoices submitted, and the creditworthiness of your customers. Invoice factoring generally costs more than invoice discounting due to the collections and account management services included with the facility.
You’ll find our prices to be highly competitive. We’re the largest working capital lender in Australia and New Zealand, with over 30 years of experience helping SMEs get the funding they need. Speak to one of our friendly team of Business Finance advisors today to receive a no-obligation quote.
HOW QUICKLY CAN I RECEIVE FUNDING?
Cashflow Finance is much faster to set up than a traditional bank loan or overdraft. Once the facility is in place, you can receive funding in as little as 24 hours of submitting an invoice. You’ll need to provide us with some details to get your facility approved, but your outstanding invoices are the only collateral you need.
Not sure if Cashflow Finance is right Learn more
for you? We offer other finance solutions
Call us to discuss how we can finance your business
1300 505 883