11/14/2023 0 Comments Open invoice finance![]() Examples used in this article are for illustrative purposes only. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this, consider the appropriateness to your circumstances. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. This article is intended to provide general information of an educational nature only and is prepared without taking into account your individual and/or business needs and objectives. Because it integrates directly with your business banking and accounting software you can worry less about administration and concentrate on the day-to-day running and growth of your business.* You don’t have to worry about long waiting periods for approval either, and you don’t need to provide property or equipment as security because the invoices act as security.*ĬommBank’s Stream Working Capital makes managing your cash flow simpler, more accessible and streamlined. And unlike a business loan, you only pay interest on the funds you draw down. ![]() As you add more invoices, available funding increases instantly too so you don’t need to keep applying for finance. One of the great advantages of Stream Working Capital is that it scales to meet your unpaid accounts receivables. ![]() The amount of funding available is calculated in real-time as invoices are added to your system, and the loan balance outstanding is adjusted as your customers settle invoices by paying into your Stream Working Capital Transaction Account.* CommBank will then provide finance for up to 80% of the value of your customers’ invoices. ![]() To qualify, you need a minimum of $15,000 a month in unpaid invoices. However, there is a new option available for businesses seeking to use their accounts receivable to access more funds.ĬommBank’s Stream Working Capital is a new type of invoicing financing, that acts as a secured business overdraft.īy connecting directly to your accounting software, Stream Working Capital provides access to finance as soon as you nominate customers’ invoices, which means funds are available 24/7. While both of these types of invoice finance have their benefits – they tend to be expensive and may take time to be assessed and approved. Compare the two types of invoice financing Many invoice discounters will require you submit your entire receivables ledger as collateral so they can assess the creditworthiness of your clients. While invoice discounting is similar, you are still responsible for collecting the accounts receivables, while the lending institution provides funding based on the unpaid invoices you submit to them, less a lending fee. You’ll also lose control of the customer relationship at this point, with the third party chasing your customers to pay. You’ll likely sacrifice a percentage of the invoice as payment to the factoring company. You might choose to use invoice factoring if you want to outsource your debt collection, while obtaining immediate funding for the unpaid invoices. Invoice factoring is when your unpaid invoices are on-sold to a third party, which then takes responsibility for collecting the outstanding funds. There are several types of invoice finance on the market – including invoice factoring and invoice discounting. Invoice finance gives businesses access to the value of invoices that have been issued to customers, but not yet paid.
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