How Invoice Finance Works
The main advantages of Invoice Finance are:
- speed
- simplicity
- no property security required
It works like this:
- You give us your invoice(s) for completed work, or for a sale where delivery has taken place
- With your cooperation, we tactfully arrange with the debtor (your customer) to pay
us for the invoice when it's due. Nothing is revealed to your customer about your
finances.
- We advance you cash - usually between 70% to 90% of the invoice value
- When the customer pays us, we immediately pay you the balance of your invoice, after deducting our
fee, and give you a full statement of account
It can't get any simpler than that!
Other Things You Should Know About Barnfire Capital Invoice Finance:
- We finance amounts up to $200,000, either a single invoice or a batch.
- Invoice Finance is only available for Business-To-Business ("B2B") sales
- We charge a single fee, based on small percentage of the invoice value and the
time taken to pay. There are no other charges, and early repayment is welcome without penalty.
- Because we finance invoice-by-invoice, there is no ongoing volume commitment or
requirement. This means you only draw finance when you need it, and there's no excess or
wasted finance costs.
Comparisons With Other Working Capital Sources:
This comparison table shows why Invoice Finance from Barnfire Capital has competitive advantages over a bank
loan, or other typical debtor finance.
Barnfire Capital Invoice Finance works best for immediate short-term, ad-hoc funding requirements,
such as a month or two, with an average cost of around 5% of invoice value.
For the longer term, a bank loan (if you qualify) ranging from around 10% to 15% per annum plus
fees, or alternatively a locked-in contractual whole-of-receivables (debtor financing) arrangement might
be better choices.
If you're not sure which is the best way to go, call Nathan on 1300 055 233 and we'll be happy to review
it with you, with no obligation.
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