Why does it take large companies so long to pay invoices?
IF YOUR business is waiting longer for invoices to be paid in 2015, you’re not alone. Australia’s small and medium businesses are being forced to wait longer to be paid on outstanding invoices – especially when dealing with larger companies. A recent Australian Government survey shows nearly two-thirds of small businesses have invoices that were […]
Why Businesses Prefer OptiPay Over Other Lenders
WHILE Australian SMEs are increasingly using invoice finance to improve working capital and grow their businesses, common misconceptions remain about how fees are calculated. One of the most common questions asked is “what is your interest rate”. OptiPay’s answer is always the same. Interest is not charged at all – because OptiPay is not a […]
Case study: Invoice Finance for the civil construction industry
PLANT hire and civil construction companies operate in industries notorious for long invoice payments terms. They are often at the bottom of the food chain in terms of who gets paid. Case study Our client, who provided earth moving equipment, had signed a long-term contract to work on a major road project. They issued invoices […]
7 Myths About Invoice Finance Busted
Myth 1. Invoice finance hurts your income The truth: Importantly, an invoice finance service fee is not an annualised interest rate. Our fee stops the day the invoice is paid. It is absolutely no different to offering your customers a small early payment discount. Myth 2. invoice finance is only for small businesses The truth: […]
Five Important Questions About Invoice Finance
1. What size does an invoice need to be? An invoice needs to be $5,000 (including GST) or greater with no limit to the size of the invoice. If your individual invoices are less than $5,000, you have the option to “batch” up your invoices to reach $5,000 of requested funding. 2. Will my customers […]
Case study: Invoice finance for trade contractors
Invoice Finance for Trade Contractors – A Case Study BEING paid is always a challenge in the construction industry, especially for subcontractors who have to wait months for progress payments. Below we explain how OptiPay helped a Sydney electrical contractor access a $75,000 pay cheque when his business needed it most. CASE STUDY: Our client, […]
Invoice finance makes sense for commercial cleaning companies
RUNNING a commercial cleaning business in Australia can deliver high income, especially in the corporate and industrial sectors. However, working with commercial clients has one major challenge – most pay their invoices in 30 to 60 days. The subsequent lack of cash flow can be a problem for cleaning businesses which have weekly expenses to […]
Case study: Invoice finance for the labour hire industry
INSUFFICIENT cash flow is by far the biggest threat to Australian recruitment agencies and the primary reason for business failure within the industry. Our client is a Sydney-based recruitment service provider that had seen rapid growth over the past two years. Their business places candidates within the heavy engineering and mining sector, offering clients permanent […]
Invoice finance for the manufacturing industry
Our client provides specialised components to engineering firms for use in large infrastructure projects. In this situation, it had been contracted to provide its goods to a building company in the construction of a major facility for a well-known multinational. It was a long-term contract that was worth a lot of money. The problem was that our client received payment only […]
Eight tangible reasons to use invoice finance
Poor cash flow is one of the main reasons SME’s fail in Australia. Without consistent working capital, it’s difficult to purchase new equipment and materials or even pay staff wages. This problem is made worse by the inflexibility of the banks to provide higher levels of funding to firms with low fixed asset bases. But […]