BUSINESS FINANCE / INVOICE FINANCE
Put tomorrow’s payments into your business, today.
What is Invoice Finance?
Improve your cash flow
Are cash flow gaps impacting your day-to-day operations or preventing you from taking on new opportunities?
ScotPac Invoice Finance (also known as Invoice Factoring or Debtor Finance) is a line of credit that helps you turn your outstanding customer invoices into a source of readily available funding. You can access an immediate cash injection to cover new opportunities, or costs such as wages and suppliers with no property security required.
Facility limits range from $10K to $150M to support every business size.
Access Cash Connector, our cloud based funding solution. Limits ranging from $10K to $250K, with funds available in 48 hours.
What are our customers saying about us?
For us, the real advantage of invoice finance is that we can offer longer payment terms to customers thanks to ScotPac.
ScotPac make the effort to understand us and really partner with us. Its a lot more flexible than dealing with banks.
ScotPac have assisted a number of our clients in time critical situations and are highly experienced cash flow lenders.
We think of ScotPac more than just a Financial Services provider, they care enough to know our business and as such we are more like partners
It’s growth funding that gets us the best from our working capital, which covers materials, wages and other costs while we wait to be paid for our goods.
Fast, flexible and personalised Home Loans and Business Loans for Business Owners
- FAST SET UP – CONDITIONAL APPROVAL IN AS LITTLE AS 48 HOURS
- FLEXIBILITY ON DOCUMENTATION REQUIREMENTS
- USE YOUR RESIDENTIAL SECURITY FOR FUTURE BUSINESS BORROWING
Asset Finance helps by financing new and pre-owned equipment.
- FUNDING AVAILABLE IN AS LITTLE AS 24 HOURS
- FUND NEW AND PRE-OWNED ASSETS
- FUNDING FOR IMPORTED EQUIPMENT
Trade Finance provides a cash flow injection to help manage the import or export of goods
- PAY OVERSEAS AND DOMESTIC SUPPLIERS
- INCREASE STOCK LEVELS AND EXTEND PAYMENT TERMS
- SELL TO OVERSEAS CUSTOMERS
Who does it suit?
Invoice Finance solutions are suitable for any business or company selling to other businesses on standard trade credit terms. Useful for small to medium businesses as well as larger businesses with debtors who are slow to pay, causing a gap in cash flow or those with seasonal cash flow cycles. We also provide funding for businesses affected by late payments or extended payment terms, such as 90 days or more.
For more information about how we can help your business, fill out an enquiry form or call us today.
We find a way to say “yes”. We’re nimble and inventive with our funding solutions by unlocking the hidden value in your assets.
Frequently Asked Questions
WHAT IS THE DIFFERENCE BETWEEN INVOICE FINANCE AND FACTORING?
Invoice factoring is generally a funding facility where the lender manages your accounts receivable and collections. This is beneficial for businesses that don’t have a dedicated accounts department. It enables you to spend more time growing your business with sufficient cash flow rather than chasing payments and accounts management.
With Invoice Finance or Invoice Discounting, you send your invoice details to the lender, but your business retains control over collecting the outstanding invoices. The funding facility is usually strictly confidential. Due to the collections service, factoring fees are generally higher than the fees paid for Invoice Discounting.
WHAT ARE THE DIFFERENT TYPES OF INVOICE FACTORING
There are two main types of invoice factoring: recourse and non-recourse factoring.
In a recourse factoring arrangement, the risk of non-payment of the invoice remains with your business. If your customer is unable to pay, you will need to cover the cost of the financing you received from the factoring company.
With non-recourse factoring, you essentially sell the invoice. Once you have received funding, the factoring company is responsible for collecting the debt. Because of the increased risk, factoring companies generally charge higher fees for non-recourse factoring.
With ScotPac, you can mitigate the risk of non-payment with Bad Debt Protection. This additional service protects your business cash flow in the event of customer non-payment.
HOW IS INVOICE FINANCE DIFFERENT FROM A BANK LOAN?
While traditional business loans and overdrafts typically require real estate collateral, Invoice Finance uses your accounts receivables as security. You can get paid faster for the goods and services you have already sold.
You get an immediate cash advance on your unpaid invoices, with the finance company charging a small percentage as a fee for the facility.
Unlike a traditional business loan, you can be approved for a Debt Factoring or Discounting facility and access a cash advance in as little as 24 hours. There are no fixed monthly repayment terms, and you can choose how many invoices you want to submit for financing.
IS INVOICE FINANCE BETTER THAN AN UNSECURED BUSINESS LOAN?
Invoice Financing is more flexible than an unsecured business loan. With an unsecured loan, you receive a lump sum from the lender. Over the term, you repay the loan principal plus interest through regular repayments.
An Invoice Finance facility provides access to funding as and when you need it. You can fund an invoice when you need a cash flow boost, and the repayment happens automatically when your customer pays the invoice.
Invoice Financing is also more accessible. Most loan providers require a business to have a long trading history and a strong credit rating. An Invoice Finance company is more interested in the ability of your customer to pay the invoice. Your receivables provide the security you need to access funding.
IS INVOICE FINANCE SUITABLE FOR START-UPs?
Yes. A Debtor Finance facility can be an excellent option for a growing start-up or small business. It can help to improve cash flow management and fuel sustainable long-term growth.
Due to strict lending criteria, traditional loans and overdrafts are usually out of reach for start-up companies. We are interested in where you are headed, not how many years you have been in business. Call the number below and speak to one of our financial advisors to see which finance product is the best option for your growing business.
WILL MY CUSTOMERS BE NOTIFIED?
It depends on the type of Invoice Finance facility you choose. With Invoice Factoring, we’ll handle your accounts receivable and collections administration as a third party. So your customers will be aware of your partnership with ScotPac.
If you would like a confidential arrangement, ask one of our friendly business finance specialists about Invoice Discounting. You can manage your accounts receivable and collections with the funding arrangement remaining confidential.
WHO DO MY CUSTOMERS PAY - INTO WHAT BANK ACCOUNT?
Once your funding facility is in place, we will provide your customer with new bank account details. Depending on your facility type, this ‘Notice of Transfer’ can appear on our letterhead or yours.
WHAT HAPPENS IF MY CUSTOMER DOESN'T PAY AN INVOICE?
We work hard to ensure that doesn’t happen. We’ll conduct credit checks to help you avoid overextending with a customer that may struggle to pay. If you are worried about how an invoice non-payment could impact your finances, you can include Bad Debt Protection as part of your credit facility to protect your working capital.
HOW FLEXIBLE IS THE FACILITY IN TERMS OF AGREEING ON INCREASES IN LIMITS?
We work hard to ensure you’re set up with the best funding solution for your current needs. On average, our customers grow at 3x the rate of Australian GDP. We’re very flexible when it comes to accommodating business growth, acquisition and other opportunities.
We understand the highs and lows that business owners face and adapt to your ever-changing needs and cash flow requirements.
IS THE FACILITY EASY TO MANAGE IN ONE PLACE?
Yes, you will be able to access an easy-to-use online portal. You can upload outstanding invoices, view your funding limits, and download reports.