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Invoice Finance

As a business owner, there are times when cash-flow can be an issue, no matter how profitable or successful your business is. One of the major reasons for cash-flow issues within a business is the fact that you must wait for customers to pay their invoice balances in full. This can create a range of challenges for a business owner. You need a valid, effective, and secure way to improve cash-flow in order to run your business, pay employees and suppliers, and to reinvest in your operations and growth. The solution to this lies in invoice finance.

Most businesses sell goods and services on a credit basis, particularly when the transaction is B2B in nature. The customer is not required to pay immediately, and bill due dates may be as much as weeks or even a month into the future. Many customers, in turn, fail to pay their invoices on time. This form of invoicing and extending credit can be great for client goodwill; however, it can also tie up funds within the vendor’s business. Businesses often find that they need to finance these invoices in order to meet their own requirements for short-term liquidity.

What is Invoice Finance?

Also referred to as “receivables financing” and “accounts receivable financing”, invoice finance provides a way for businesses to borrow money. Instead of real estate or property being the collateral on the loan, with invoice financing, money is borrowed against amounts already invoiced and due to be paid by customers.

As the borrower, you receive a large percentage of the invoice value quickly. The remainder of the invoice is forwarded after the customer has paid it in full, less the lender’s advance fee. It is a short-term loan extended by the lender based on unpaid invoices and this improves the working capital of the business, providing immediate funds to use for business expenses.

How can Universal Finance assist with Invoice Finance?

Invoice finance provides a solution to the problems that result from customers failing to pay their invoices on time. It also eliminates the issues that arise when a business owner has difficulty obtaining other forms of credit for business purposes.

Universal Finance is a superior South Australian-based finance company and we offer invoice finance among our many financial services. We have been consistently providing Australians with effective solutions and a valid alternative to traditional mainstream lenders since 1999.

At Universal Finance, we have an understanding team of professional consultants and we have access to a vast array of private lenders, giving far greater flexibility than banks and other mainstream lenders offer. We deliver solutions without delay so that you need not worry about the loss of income or business in the interim. We deal directly with lenders in order to save time and money.

Invoice finance is the ideal solution for everyone including small businesses, larger businesses, seasonal businesses, and even businesses with bad credit. It allows you to:

  • leverage your sales
  • reduce reliance on property as security
  • cover unexpected demand
  • manage cash-flow
  • free up personal property and funds

Choose Universal Finance

Contact us at Universal Finance today. Our friendly team of consultants has the knowledge and industry experience to understand your needs quickly and work with you to develop a suitable solution. Look no further than Universal Finance for superior invoice finance.