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The number of companies offering invoice finance in Australia has increased over the last few years. While this is a good thing, you should be aware that not all the companies offer the same funding options and level of service. The following are some considerations to make when selecting an invoice finance provider.

1. Products and Services–It is important to understand the various invoice finance options available and how they differ from each other. Not all invoice finance companies offer invoice discounting Australia or single invoice finance for instance. Other invoice finance products that you should look out for include:
• Dedicated Client Manager
• Credit Control
• Online Account Management
• Bad Debt Protection
• Customer Credit Checks

2. Fees – The payable fees for invoice finance business loans will normally depend on the type of product you choose. In the case of invoice discounting Australia, you will be charged a certain fee after the invoice has been paid for in full. You could also be charged a monthly fee which is the percentage of invoices submitted for the month. In the case of factoring, you may be charged a monthly minimum which can be stressful to achieve if you have a business that exhibits seasonal trading patterns. Ensure that the invoice finance company you choose understands your needs and offers flexible options that can be reviewed as your business grows.

3. Concentration/Amount – there are invoice finance companies that will restrict the amount of finance they offer for certain invoices. Before signing your agreement for invoice discounting Australia, confirm that your customers will be funded sufficiently to cover your needs. For example, if you only have one customer that you give credit, your concentration (amount) would be 100%. There are some invoices discounting companies that will restrict the amount to only 20%. This means that for an invoice of $10,000 the company will release to you only $2,000 for funding.

4. Service – Choosing an invoice finance provider that offers professional and friendly services will determine the kind of experience you get with this type of financing. The financier should provide sufficient support and the necessary guide when you’re setting up the process. Always ask questions when making inquiries and rate your level of satisfaction from the answers given. Also, ask for client testimonials. This was you can learn from the experience of other business owners that have received financing from the company before you make your decision.

5. Industry Experience – there are invoice finance companies that cater for all sectors while other industries specialize in specific niche industries. Finding a company that deals with your specific industry means they will be able to better understand your business and can help you set up a facility that satisfies your requirements and needs.

In the past, business owners would go for a short term loans or a bank overdraft facility when they needed finances for a proposed investment of expansion for their business. In the recent times, banks have had weakened balance sheets that have made them more reluctant to offer these invoice discounting Australia options to owners of business that are cash-strapped. Invoice discounting is a solution for businesses that require more generous funding with no security.

2017-11-22 17:20:58, views: 210, Comments: 0