Invoice financing is a revolving line of credit against unpaid invoices and the most recent increases in applying for it were noted after the Australian Taxation Office announced it was resuming tax debt collections.
The amount of debt owing to the ATO has climbed 14 per cent from the same time last year to over $40 billion.
Angus Sedgwick, chief executive of OptiPay, said the most interest in invoice financing is coming from manufacturing and wholesale trade industries, with invoices in these industries still taking 15-20 days past the due date to be paid.
“Many companies with annual revenue between $2 million and $50 million and over are trying to fix their cashflow quickly as the ATO has begun contacting businesses individually and with some being issued with demands for payment to restart their overdue tax obligations after exercising leniency during the pandemic,” Mr Sedgwick said.
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Who is OptiPay?
OptiPay, one of Australia’s leading business finance providers, has been dedicated to helping small business owners solve cash flow challenges for over a decade and has provided $1.5 billion in business funding to more than 500 Australian businesses. OptiPay specialises in modern financing solutions such as invoice factoring, invoice finance, debtor finance, and lines of credit. OptiPay’s mission is to support business growth providing liquidity in as little as 24 hours, ensuring they have access to tomorrow’s cash flow today. This rapid access to funds helps businesses maintain smooth operations and seize growth opportunities without the stress of cash flow constraints. At OptiPay, we believe that healthy cash flow is the lifeblood of any successful business. Our commitment to helping businesses overcome financial hurdles and achieve their growth ambitions has solidified our reputation as a trusted partner in the business finance sector. Whether you are looking to stabilise your cash flow, expand your operations, or navigate financial challenges, OptiPay is here to support your journey with innovative and efficient financing solutions.
