25.7.15 – 7 Myths About Invoice Finance – Busted Myth 1. Invoice finance hurts your income
The truth: Importantly, an invoice finance service fee is not an annualised interest rate. Our fee stops the day the invoice is paid. It is absolutely no different to offering your customers a small early payment discount.
Myth 2. Invoice finance is only for small businesses
The truth: As long as you have reliable debtors and your invoice (or combined invoices) is worth more than $5,000, you will almost certainly qualify. Many large and successful Australian businesses use invoice finance.
Myth 3. All invoices must be sold
The truth: Unlike other providers who require you to hand over your entire debtor books for 12 months, The Invoice Market provides a more flexible option that allows you to finance invoices on a needs basis.
Myth 4. Invoice finance is a lender of last resort
The truth: The current thinking is that many companies use Invoice Finance in a positive way – to boost working capital and grow the company.
Myth 5: My customers will think I am going broke
The truth: It would not be uncommon if your customers are using invoice finance in 2015. Smart Australian SMEs understand invoice finance is the best way to manage cash flow shortfalls before they turn into a problem.
Myth 6: I will be locked into a long-term contract
The truth: When you work with The Invoice Market, there are no lock-in contracts. You choose what invoices to sell and the length of time you wish to use our services.
Myth 7: I will drown in paperwork
The truth: The Invoice Market web-based application is quick and easy-to-use. To launch a trade you simply upload your invoice and supporting documentation to us. It’s quick and easy and you won’t be swamped in paperwork.
How it works:
1. Register with us
Register to become an approved Seller with The Invoice Market online application and once approved you can commence funding with The Invoice Market.
2. Log in to our online platform
Upload your invoices that you would like to obtain funding against. You can lodge as many or as few as you wish.
3. Terms are set
The Invoice Market will confirm the discount rate and advance percentage. There are no monthly minimums and no lock in contracts.
4. Get your money
You will receive the agreed cash deposited directly to your bank account to provide the working capital you need to run your business.