Invoice finance is a flexible type of business finance that lets small businesses borrow funds against unpaid invoices. This guaranteed cash flow can be reinvested into the business to help maximise growth. Some of the ways this can be achieved is by investing in the production of goods and services for new sales, or to take advantage of attractive new business opportunities.
What is invoice finance?
Invoice finance is a flexible type of business finance. Small businesses can choose to borrow funds against a single invoice, invoices with a selected customer or customers, or the whole accounts receivable ledger.
In its most basic terms, invoice finance is a form of short term borrowing that allows a business to unlock working capital tied up in unpaid invoices. Rather than having to wait for those invoices to be paid, invoice finance releases those funds upfront which can be used to grow the business.
Invoice finance is often seen by small businesses as a more flexible way to borrow since the loan is only repaid when the invoices are paid. There are no regular weekly or monthly repayments that are common with other types of business loans, while you can also enjoy the fact that you do not need property assets as security if you choose to utilise invoice finance.
With the internet, a constant presence in our lives, you can rest assured that modern invoice finance providers such as Skippr will leverage modern technology to its fullest extent. We utilise a live connection to cloud accounting software providers such as Xero, MYOB and Quickbooks. This means businesses don’t have to manually provide financial accounts, or invoice details and makes payment reconciliations a breeze.
How invoice finance works
Some of the benefits of being part of the Skippr family include:
- Skippr Invoice Finance provides up to 80 per cent of the total value of the eligible accounts receivable in a line of credit. We give your business access to cash today so you can reinvest to where it’s needed most.
- Skippr Invoice Finance only charges a draw-down fee and interest on the outstanding loan balance. No hidden fees, no contracts.
- Your available limit on the Skippr platform is updated as you raise new invoices and you can draw funds the same day with a single click.
How to apply
Applying for invoice finance with Skippr is a quick and easy online process that won’t take weeks for approval.
To qualify for a business loan from Skippr Invoice Finance, your business needs to demonstrate the following:
Your business has outstanding accounts receivable with other businesses (not customers).
You trade with creditworthy business customers.
Your business is not heavily indebted to other lenders.
The first step is to create an account with Skippr Invoice Finance at skippr.com.au and connect your accounting software.
In less than 24 hours we will be back in touch with either an offer or some additional questions.
If you have any concerns or questions throughout the process, please don’t hesitate to get in touch with a friendly member of our team.
How does Skippr Invoice Financing work?
To start, you connect your accounting software and answer a couple of questions relating to your needs. Using this information we are able to review your business and the customers you work with and provide a no-obligation offer.
An offer confirms how much funding we can provide you based on the amount of eligible outstanding invoices, how much it will cost you and the security required to be held by Skippr Invoice Finance.
Once our team has onboarded you, you are ready to draw funding. You can view the available funding live on the Skippr Invoice dashboard and request funding in a couple of clicks. We process funding requests immediately and expect to receive your funding in less than 24 hours.
When any customers pay their invoices, they pay into a collections account we have opened in your businesses name. These payments automatically repay the loan balance and interest accrued is calculated and charged.
Important to note – all drawdowns and repayments are automatically reflected in your accounting software, saving your Bookkeeper hours of reconciliation work.
How is Skippr Invoice Finance different from other lenders?
At Skippr Invoice Finance we pride ourselves on being fair and flexible
Invoice finance is traditionally a clunky and burdensome financial product for a business. We make it easy with:
- Simple and transparent pricing: we charge only two fees and instead of accruing fees against the total value of your receivables, we only charge fees against what you draw.
- Flexible: Pay only for finance when you need it. No minimum monthly fees. No lock-in contract.
- Seamless and smart: Draw finance and reconcile seamlessly online. We push back all finance data straight into your accounting package. No uploading of documents and no manual bookkeeping.
- Free cash flow management: Manage your collections and forecast cash flow for free with Skippr. Always know why you need finance before you actually need it!
- Exceptional customer service: Dedicated and friendly Account Manager to assist with all things financial.
What is invoice financing?
Invoice finance is also known as invoice discounting, receivables finance debtor finance and factoring.
Invoice financing is a form of short term borrowing that allows a business to unlock working capital tied up in unpaid invoices to improve cash flow, pay employees/suppliers, reinvest in operations and grow.
Your business issues invoices to its customers and those that remain unpaid are considered assets. Invoice financing allows you to draw money against these assets without having to wait for the customer to pay.
Skippr Invoice Finance can advance you up to 80% of the total value of invoices outstanding to customers you have selected to fund against. You pay a percentage of the total amount drawn down to receive an immediate injection of cash, repaying the loan as your customers’ payments come in.
Why do businesses use invoice financing?
Invoice financing helps a business accelerate growth.
Rather than chasing up or waiting for debtors to pay, which can be a time consuming and tedious job, businesses can use invoice finance to release cash flow from their debtor ledger immediately. These funds can then be used as you feel fit to run and grow the business.
It is quick and easy to apply for funding through Skippr Invoice Finance. There is no need to wait for your customers to pay – Skippr gives you control over your cash flow with quick and consistent cash injections.