A common challenge of being a small business owner is ensuring that you have access to cash when you need it. However, when clients have extended credit terms, it may be just one large unpaid invoice that puts you in the red. In the past, slow paying customers were often seen as being at high risk of non-payment. But these days, large customers choosing to delay the payment of invoices is a clever business strategy to improve their own cash situation.
A key advantage of single invoice finance is that you have complete control over which client or supplier invoice you borrow against and your client will not know that you have drawn funds against them.
Rather than borrowing against the value of many or all unpaid invoices, you can strategically choose which invoice to borrow against – for instance, a client whom you have a good rapport with and who will pay in full in time.
Single invoice or selective invoice financing is a short term finance product that allows a business to unlock cash tied up in one large unpaid invoice to improve cash flow, pay employees and suppliers and reinvest in operations. Because you’re borrowing against money already owed to your business, you won’t need to use real estate as security.
For example, think of one of your large clients that has a large unpaid invoice. You know that because of their debtor history, your relationship with them, and their size, trading history and credibility, that they will repay their debt in full eventually. Rather than wait weeks or months to receive the cash, you can utilise short term finance against the invoice straight away.
While the terms differ slightly, invoice finance can also be known as invoice discounting, receivables finance, debtor finance and factoring. Single invoice finance or selective invoice finance is a subset of invoice finance.
Invoice financing is a form of short term finance that allows a business to unlock working capital tied up in all or part of its unpaid invoices ledger to improve cash flow.
Your business issues invoices to its customers and those that remain unpaid may be considered as eligible invoices. Invoice financing allows you to draw up to 80% of the cash tied up in these assets without having to wait for clients to pay.
Single invoice finance allows your business to draw finance on a single invoice instead of many. The amount of funding you can access varies from client to client. However, typically, in single invoice financing, we provide up to 80% of the total value of the eligible unpaid invoices.
Skippr’s flexible invoice finance lets you draw down funds from one or more invoices from a single or multiple customers. Many businesses like this single invoice or single customer approach and stick with it while others find it convenient to add more invoices and customers to get access to a great amount of funding.
At Skippr we are fully flexible and will work with the needs of your business.
Applying for single 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:
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.
Once you accept the offer, we can often provide your invoice finance funding within 24 hours. No stress, no hassle, no banks. Just the Skippr personal touch..
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.