Frequently Asked Questions
We have separated this page into two sections – FAQ’s for financing receivables (invoice finance) and FAQ’s for financing payables (supply chain finance and trade finance). Please scroll down.
What is the difference between single invoice finance and full book invoice finance?
As the name implies, single invoice finance allows you to sell the financier one invoice with no obligation to use any other invoices as security for funds. Full book invoice finance occurs when you sell all your invoices to a financier on a long term basis.
How quickly can I have the money?
Once your facility is approved you can have money in your account within 24 hours. For existing clients that transfer can occur within 2 hours.
How much money can I have
Typically, we will advance you up to 80% of the invoice amount.
Is it possible to sell just one invoice and no more?
Absolutely. We don’t ask you to sign a contract committing to sell us all your invoices. In theory, you can use us once. However, most clients use us 6 – 7 times.
How much do you charge?
It’s a little complicated but check out this article “What is your interest rate” which provides you with all the details.
What are your setup costs?
In most instances there is no set-up fee.
What if my customer does not pay?
There are two reasons a customer does not pay. The first is because the business becomes insolvent. We will often protect ourselves from loss by insuring your customer.
The second reason is generally because of a dispute over the product or service. That being the case, the responsibility falls to you. If payment is not forthcoming we will ask you to provide us with an exchange invoice or repay our funds from your reserves.
Do you insure every invoice you buy?
Insurance is preferable but ultimately that decision rests with us. We often require insurance to protect ourselves and our clients. An exception applies to Government agencies and most blue chip companies.
Do you have a maximum invoice age you will buy?
Sixty days is a maximum age. We will not buy an invoice if it is past due regardless of its age.
What do I have to do to qualify for a facility?
Our client criteria is not too onerous and we look at every situation on a case by case basis. The first thing to do is to call and ask for an application form.
Does my business have to be profitable?
Profitability is desirable but not mandatory.
What if my business has a poor credit rating?
We will look at the circumstances on an individual basis.
Do you offer any other sort of funding other than invoice finance?
Yes. We have a number of short-term loan products available. Please speak to one of our staff about your needs.
What is the difference between supply chain finance and trade finance?
Supply Chain Finance (SCF) allows you pay your domestic suppliers from a revolving credit line. You don’t have to return the money until your customers pay – freeing up your own cash.
The fund is underpinned by credit insurance which means it can be unsecured.
Our Trade Facility (TF) can be used to pay domestic AND international suppliers. Deposits can also be paid. This facility requires collateral.
How does it work?
We set up an off-balance sheet revolving credit line which you can draw on when it comes time to pay suppliers. Who gets paid and when is entirely up to you. You send us the invoice, approve the payment and we release the funds.
How do I qualify
Your business needs a proven track record and be in a strong financial position with a good credit report and taxes up to date or, at least, a payment plan in place.
How quickly can I receive funding?
Once we have received your application and supporting documents we can be set up and ready to roll within a week.
How much will it cost?
You only pay for the funds you use. In general, you will pay a small daily rate for outstanding funds. If you are using supply chain finance, you can offset that cost by obtaining a discount from your supplier in return for early payment of their invoice – though this is not mandatory.
Do we need to change our current finance arrangements?
Not from our point of view. Our credit line is off-balance sheet and should not interfere with existing arrangements you have in place.
What security do I have to provide?
If you are using supply chain finance we may be happy to accept credit insurance as our sole security or, at most, we may require a charge over the company assets and director guarantees. It depends on your business and its size.
Trade Finance requires security which may be real estate or company assets as well a signed guarantees.
Can you pay overseas suppliers?
Our trade finance enables you to pay international manufacturers and suppliers and even pay deposits.
Do all my suppliers have to enrol to receive early payment?
No, but there are huge benefits to suppliers from receiving timely or early payment of invoices, so we would encourage as many as possible to sign onto our platform.
This is also important from your point of view because the more suppliers you have receiving timely or early payment the greater the benefits to you.
How do I manage the facility?
Your facility is managed through our state of the art online platform ‘Stream’ . You can upload invoices, determine when they should be paid, determine and manage your costs and track all transactions with clear and concise reporting which can be integrated with your existing accounting system.
1300 430 076
P.O. Box 1230
40 Park Rd
Milton, QLD, 4064