A dive into invoice finance and invoice factoring in Australia

Are you running a small or medium business? If yes, you might have faced the barrier of cash flow. To successfully run a business, it is very crucial for small and medium scale businesses to break the barrier and allow smooth cash flow.

Imagine, you sell your good/service with the utmost dignity, send the invoice to the clients, and have to wait for days for clients to pay your invoices. Annoying, right? Enterprises that operate using the invoices as a financial instrument, often experience such situations, where they have to wait for days for the clients to clear the invoices. Such pitfall circumstances create havoc effect on the business.

These unnecessary payment delays can create a web of inconvenience for business owners who wish to fund their business without any delays. It is very crucial for the owners to unlock the cash flow against the unpaid invoices. This is where invoice financing companies come to the rescue for all the small and medium scale business owners.

But what is invoice financing?

When your business delivers goods/service to your esteemed business customers, you raise invoice stating details such as product quantity and the price. Now, in simple terms, the process of unlocking the cash flow, that is stuck against the unpaid invoices is known as invoice financing, factoring, or discounting. The process of invoice financing involves borrowing the cash from the financing companies instead of waiting for your customers to clear the invoice. It’s the best way to get your stuck money quicker and safer.

Thanks to the invoice factoring companies who work as a rescue to all the business owners who meet adversity of smooth cash flow.  Such companies will pay upfront, instead of waiting for the days for the invoices to be clear. Invoice financing can help the business owners in many aspects such as improving cash flow, quick access to money, pay wages to the employees, and confidentiality. One such company is Smart Invoice, providing smarter ways to avoid the pitfalls of borrowing cash. Their invoice solutions are far more reliable and affordable than the traditional business loan.

Their funding products involve:

-Invoice financing

-trade- import/export finance

-supply chain finance

Understanding the business, we own and kind of unpaid invoices we have, they offer us the right funding solution to improve business cash flow.

Invoice finance

While running a small to medium business, cash flow is the most frequent pipe of blockage that the owners experience. With so many aspects to be considered such as wages, bills, rent, and all other necessary equipment costs it becomes stressful to clear all the drainage without the cash. At times, there is definitely a need for flexibility to cover the cost. Invoice financing can be a genie for these situations.

With invoice financing, we can get into the upfront money which is already in your account receivable ledger and sleekly clear the drain pipe, without waiting for 30-90 days.

Trade finance

Be it import or export, with trade finance we can easily trade overseas without worrying about the capital.  Trade financing involves financing for the trade for both domestic and international, trade transactions. In trade finance, both the seller and buyer want to benefit. The exporter that is seller requires an importer to prepay for the goods shipped and the importer that is buyer obviously, want to reduce the risk by asking exporter valid proof for the products shipped.

Trade finance will let you focus on lucrative deals and also services like invoice factoring in Australia rather than just focusing on how to manage cash flows.

Supply chain finance (SCF)

Supply chain finance is a cash flow that helps businesses free up working capital trapped in a global supply chain. Supply chain finance is a solution design to benefit both buyers and suppliers. Buyers can extend their payment terms and the supplier gets early paid.

This solution can benefit businesses that import goods to unlock the capital as well as diminish the risk involved with buying goods in bulk quantity.


If you are looking for an invoice online in Australia, visit Smart invoice today, they are the right people to ask for the best finance solution to overcome the unpaid invoices in a better, safer, and the quickest way.


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