Demand for invoice financing increasing

Recent comments from the Australian Banking Association indicate that after nearly 2 years of difficulty, there may be some circumstances where banks are no longer able to support struggling businesses. In addition, it has been suggested that the ATO may take a harder line with businesses that lodge late payments. These conditions have resulted in a rise in demand for invoice financing over the past 12 months, with demand precidcted to continue.

What is pushing the increased demand for invoice finance?
A combination of factors are pushing the increased demand for invoice finance, including tighter bank credit conditions - particularly for SMEs. This has made invoice finance or debtor finance one of the most accessible forms of business finance available, due to the fact that these types of facilities do not typically require real estate security.

This also means invoice finance is ideal for growing businesses in the current climate, as the funding limits grow in line with sales and are not capped to a percentage of the property value, as is the case with a typical business loan.

In addition, uncertain trading conditions and slow debtor payments are placing added pressure on business cash flow. On average, it takes about 54 days for invoices to be settled, almost double standard trading terms and many operations cannot absorb this temporary cash-gap, particularly those with COD terms from suppliers.

Looking at the bigger picture, certainly the GFC has highlighted the importance of strong cash flow for business owners. As a result, there is now a greater awareness of invoice finance products by business owners. Add to this the fact that invoice finance has all but lost its tag as 'emergency lending' and is now considered a viable mainstream funding option for SMEs in Australia.

How can Intellichoice help
With access to over 20 lenders, the business finance specialists at Intellichoice will find you a flexible product to meet your business needs.

• Improve on cash flow and help your business run smoothly
• Access funds quickly to capitalise on business opportunities as they arise
• Fund business growth with increased working capital
• Increase your purchasing power and improve supplier relationships
• No real estate security required
• Past credit issues are not a problem - we may still be able to find a solution for you
• No red tape application process - you can access funds within 24 hours
• Have up to 90% of the value of your invoices available for use in the business within 24 hours
• Flexible facilities that grow with your business 
• Tax deductible fees
• We can assist you with efficiently managing the collection process or you can choose to maintain complete control
• Rapid source of funds
• Simple setup process
• Funding available for almost every type of business

As a premier provider of debtor based finance solutions, we first understand your business and then tailor a finance solution to suit your business needs. Contact one of the business finance specialists at Intellichoice today on 1300 55 10 45 or email info@intellichoice.com.au to find out how we can help you grow your business. We have access to other business cash flow solution, including trade finance, inventory finance and equipment rental finance.