Urgent Invoice Financing Loans
Discreet Invoice Financing Delivered As Needed
At Royce Stone Capital we have exclusive wholesale invoice financing funds that work with us, that mortgage brokers don't have access to! The reason we've hand chosen these funds, is they don't take property security as a requirement of funding unlike other lenders, and they offer more flexible terms than banks and second tiers. The funds we work with are purist invoice financiers, that are coaligned with you. Enjoy the following benefits:
- A Discreet facility (your customers won't know about the facility, unlike other lenders).
- Facilities up to $5M!
- 75% to 90% of the invoice amount funded upfront!
- Interest is only charged on drawn down funds that you use, not on the face value of the invoice amount like other lenders!
- A lender that is happy to rank second to a bank, if you decide to get bank funding in future.
- No property security is required for the facility.
- Competitive risk adjusted pricing.
Work with us today, to discover a new way of private lending, tailored for you!
Non bank urgent invoice financing loans
When To Use Invoice Financing?
Invoice financing serves as a great free cashflow solution, to help business owners stay liquid. Invoice financing ensures businesses have the cashflows they require to continue growing, by financing the payment period between when an invoice is issued and when it is due to be paid! Typically, businesses will use invoice financing when they are rapidly growing, or when they have already exhausted traditional funding routes.
- Get funded, when taking on larger clients, to help with staff payments and supplies.
- Get funded when you need to fund other jobs, whilst waiting on payment for work you've already done for other clients.
- Get funded, when customers are delaying payment and you can't afford to wait.
- Get funded, when your business requires an extra cash injection to grow or survive.
Contact us today, so we can get you immediate access to funds!
HOW TO GET INSTANT INVOICE FINANCING
Application Process For Your Invoice Financing Solution
Our invoice financing solutions are funded by private wholesale funds, that mortgage brokers don't have access to. This means unlike the banks or most second tiers, the funds we work with have less stringent lending terms compared to the major players. If you don't qualify for bank funding or don't want to deal with the banks, and wish to have a discreet facility, without providing extra property security to the banks, then the funds we work with are for you! The application process consists of:
- A copy of your business financials.
- A review of the main contracts you wish to fund and invoice terms.
- A review of existing lenders and GSAs against your business to ensure the debtor book can be secured by the lender (they do all this).
- Loan agreements are issued for your lawyers to review.
Work with us today, to discover a new way of private lending, tailored for you!
THE BENEFITS OF USING US FOR YOUR DEBTOR FINANCING NEEDS
Why Work With Us For Invoice Financing?
Because we are also business advisors, we understand the importance of layering debt in the right way, and separating business assets as a form of security to get funding. Because of this we have handpicked invoice financing funds, that offer the most flexibility, don't take property as security and are happy to go behind a bank’s senior GSA position. You can be confident that our solutions will:
- Provide you with the necessary cashflow that your business needs to grow.
- We ensure the funds we work with can accommodate your other debt facilities.
- We ensure that only your debtor book is taken as security and not your other assets.
- We ensure the invoice financing facility you take, will have the flexibility to grow with your business.
Contact us today, so we can get you immediate access to funds!
What are the interest rates for invoice financing?
Pricing of invoice financing / debtor financing is largely based on a few factors.
1. The main risk factor of debtor financing is the quality of the debtor (the party obligated to pay). If the debtor is a large company or government, then the risk of the invoice not being paid is very low. This will allow you to get better terms, than if the debtor was another small business.
2. The nature of the invoice being financed. One of the main dispute points of invoices is either the quantity or quality of the product /service being provided. Some products / services that leave themselves open to more ambiguity about quality or quantity, will attract higher pricing, than those that don't. As these transactions carry more risk. This can be mitigated by your invoice financier having a proper and in depth understanding of your invoice process.
3. The industry you are in. Some industries carry more risk of non payment and dispute than others such as the construction industry.
4. Your financials. Whilst the debtor book is the main security point of an invoice financiers, the secondary point of call is your business. Therefore the financial health of your business will play a factor in pricing.
5. The quantum of money you are using. typically the larger the facility you use, the more competitive pricing you can obtain, than smaller transactions.
Some invoice financiers will play tricks on borrowers, by stating they only charge 2% of the invoice amount per month, but only forward you 70% of the invoice value. This is greatly misleading, as interest is charged on the invoice amount, not the funds provided to you!
Realistically, and ddepending on the mix of the above factors, the effective rate of invoice financing is 11% p.a to 30% p.a on drawn down funds. Even on the higher end, this works out to be fraction per week (.6% per week), which if an invoice is financed for a month, this works out to be 2.4% interest on the funds drawn down. Assuming a 15% margin within an invoice, the 2.4% has a minor impact considering the inconvenience it is helping to solve within the business.
What are the eligibility requirements for invoice financing.
To qualify for debtor financing.
1. You must have a ACN borrowing entity.
2. You must have the need for a minimum facility amount of $250k.
3. You are in an industry / business, where once an invoice is issued, the debtor is obligated to pay, with little chance of dispute regarding quantity or quality.
4. You have enough margin in your transactions to cover the cost of capital.
What are the risks of invoice financing / debt factoring for borrowers?
Invoice financing carries less risk for borrowers compared to other forms of finance, as the financiers main form of security is their security registration against the receivables / debtor book of the business.
Invoice financiers will vary in regards to what security they require from a borrower. Some will only take the debtor book, others will want a first ranked or second ranked GSA against the business as well, others will want a personal guarantee and a number of invoice financiers today wish to have some type of property available to them.
As a borrower understanding the security position of the invoice financier you are working with, will determine the level of risk you are facing. The more you are able to narrow down their security to just the debtor book, the less risk you have of them being able to touch your other assets. Your asset protection will also be a byproduct of the structures you have in place before the loan to protect your assets.
Why would businesses use invoice financing?
The main reason businesses use invoice financing, is because the debtor book / invoices of a business, can be used as a form of security to obtain finance against! This is especially vital for business owners that don't have property security, or other forms of security to provide to a traditional lender.
This means businesses can obtain finance to help them solve their free cash flow issues, when in other instances they would not be able to obtain it. Invoice financing is superior to getting a unsecured business cashflow loan, as the pricing is far more competitive, and is an ongoing facility.
When do i use invoice finance?
Invoice financing is typically used when your business is rapidly growing, or when you need to take a loan and don't have other assets available as security. The beauty of invoice financing is it uses your invoices as a form of security, from which you can take a loan against!
The beauty of invoice financing, is you can use with other funding solutions, such as bank loans, first mortgage private loans, second mortgage finance loans, alternative asset loans and supply chain finance.
Invoice finance is a great solution for businesses that are rapid growing, that don't have the free cash flow to service their growth prior to payment!
